BlackRock applies for Bitcoin ETF
The investment company BlackRock is applying for a Bitcoin ETF that reflects the spot price of the largest cryptocurrency. The filing comes amid a period of regulatory conflict surrounding the crypto industry. A commitment by the financial giant could change the current situation.
BlackRock applies for Bitcoin ETF
Investment firm BlackRock is filing for a Bitcoin ETF, according to a document requesting SEC approval. If the plan succeeds, it would be the first Bitcoin ETF in the US to track the spot price (spot price) of the largest cryptocurrency.
However, BlackRock isn’t the first company in the North American state to want to implement this idea. A well-known industry company, Grayscale, had previously tried to register – so far without success.
ARK Investments has already struggled with the approval of the SEC. However, both companies did not give up, changed their strategy and submitted new applications in the past few months.
Accused exchange Coinbase is said to keep coins
The timing of BlackRock filing its application comes at a comical moment. The accused crypto exchange Coinbase is said to be responsible for the safekeeping of the deposited reserves.
Earlier this month, the SEC filed lawsuits against Binance and Coinbase. Many experts are certain: The stock exchange supervisory authority is currently trying to break up the crypto industry in the USA.
Coinbase does appear to be feeling threatened and has opened overseas offices since the SEC embarked on a new course in February.
BlackRock apparently has other plans. Customers in the USA should have even easier access to Bitcoin . Large financial companies are increasingly supporting cryptocurrencies – especially Bitcoin and Ethereum. In explanations, those responsible often point to enormous demand from customers
“The facility was designed to remove the barriers posed by the complexity and operational burden of investing directly in Bitcoin.” Explains BlackRock.
Based on the CF Benchmarks Index, they always want to provide customers with the current Bitcoin price . An update should take place at least every 15 seconds.
What does BlackRock’s commitment to the industry mean?
But what does BlackRock’s commitment mean for the industry? The fact that the world’s largest asset manager is now interested in establishing a Bitcoin ETF could shift the current mood in favor of the crypto industry.
The SEC’s harsh treatment of the fledgling industry over the past few months has not gone unchallenged. There is already resistance in the US Congress. The fact that BlackRock may submit an approval with a new argument could persuade the US authorities to give in and grant a license.
BlackRock argues that similar products have already been approved, although they are not or not sufficiently regulated. “The test run for a regulated market of significant size therefore does not require the bitcoin spot market to be regulated in order for the Commission to approve this proposal.”
