- BlackRock, a global asset management company, has applied for a bitcoin exchange-traded fund (ETF) named BlackRock Bitcoin ETF.
- The move aims to offer investors an opportunity to access the Bitcoin market amidst increased regulatory attention on cryptocurrencies.
- According to the filing, BlackRock’s iShares Bitcoin Trust will use Coinbase Custody as its custodian.
It’s important to note that the Securities and Exchange Commission (SEC) has not yet granted permission for spot bitcoin ETF applications. - BlackRock’s application demonstrates growing institutional interest in cryptocurrencies and could be a positive step toward regulatory approval.
- The announcement of BlackRock’s ETF plans resulted in a 2% surge in the price of Bitcoin.
By applying to a bitcoin exchange-traded fund (BlackRock Bitcoin ETF), the well-known global asset management BlackRock has made a huge step into the realm of cryptocurrencies. Given the rising scrutiny and regulatory attention surrounding this asset class, this move intends to offer investors with an option to obtain exposure to the bitcoin market.
According to the document that was filed with the United States Securities and Exchange Commission (SEC), BlackRock’s iShares Bitcoin Trust will use Coinbase Custody as its custodian going forward. It is essential to be aware that the SEC has not yet granted permission for any applications related to spot bitcoin ETFs. This is something that you should keep in mind.
BlackRock Bitcoin ETF shows growing institutional interest in cryptocurrencies
Before this year, BlackRock has already presented a spot bBitcoinprivate trust to its institutional customers in the United States. This most recent turn of events takes place at a time when the global cryptocurrency business is under scrutiny from the securities regulator in the United States of America, which has charged that breaches of securities laws have taken place inside the sector.
Reverberations have been felt all over the digital assets market as a result of the recent high-profile litigation that the regulator has launched against big exchanges Coinbase and Binance. In light of these developments, Joshua Chu, the group chief risk officer at blockchain technology group XBE, Coinllectibles, and Marvion, emphasizes that BlackRock’s application for a Bitcoin exchange-traded fund (ETF), coming from a well-respected and established asset management company, could be seen as a positive step toward regulatory approval.
BlackRock is applying for the Bitcoin ETF on behalf of Coinllectibles. This new example exemplifies how resilient cryptocurrencies are by further highlighting the pervasive interest that the general public has maintained in them.
BlackRock’s Bitcoin ETF announcement boosts market, Bitcoin surges 2%
An exchange-traded fund (ETF) that tracks the spot price of Bitcoin would make it possible for investors to monitor changes in that price without requiring them to make direct purchases of the cryptocurrency. The proponents of this notion contend that an exchange-traded fund (ETF) would make it possible for investors to have exposure to Bitcoin in a way that is both more accessible and regulated.
The proposal submitted by Grayscale Investment LLC to convert its flagship spot Grayscale Bitcoin Trust (GBTC.PK) into an exchange-traded fund (ETF) was denied by the SEC in a decision that made headlines last year. In response, Grayscale filed a lawsuit against the SEC, claiming that the agency made arbitrary decisions, especially because the regulator had previously given its OK to bitcoin futures ETFs.
The Securities and Exchange Commission has turned down proposals for spot bitcoin ETFs from several significant companies, including Fidelity, Cboe Global Markets, and NYDIG, among others.
On Thursday, the price of bitcoin enjoyed a gain of 2% as a direct result of the news that BlackRock intends to launch a bitcoin exchange-traded fund. As of this past Friday, the value of the cryptocurrency was estimated to be $25,506, which is an increase of 54% year-to-date.
CoinDesk was the first to break the story of BlackRock’s ETF plans earlier in the day, which further solidified the importance of this event across the tech and financial worlds.
Do you know why people use Bitcoin when playing online slots?
Featured image credit: David McBee
