BlackRock Amends Prospectus for Bitcoin ETF Application
BlackRock, the world’s largest asset manager, has submitted an amended prospectus for its spot Bitcoin exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC). The filing includes notable changes that address competition in the race for Bitcoin ETF approval and provide detailed explanations on pricing and reporting mechanisms.
The initial application, titled iShares Bitcoin Trust, was filed on June 15, 2023. BlackRock refiled in July to include a surveillance sharing agreement with its custodian Coinbase and Nasdaq.
Changes in BlackRock’s Latest Filing
The recent filing acknowledges the uncertainty of achieving initial market acceptance and scale due to competition. BlackRock is currently competing with at least seven other applicants, including Grayscale, the largest Bitcoin trust fund.
The new filing also provides specific details about the pricing source used in the Trust’s periodic financial statements. It includes accounting specifications such as “Level 1 input according to ASC Topic 820,” which were not mentioned in previous drafts. Additionally, it offers a detailed analysis with examples for the pricing of BlackRock’s CF benchmark index, which aggregates Bitcoin’s price across multiple exchanges.
BlackRock’s amendment follows similar actions by Ark Invest and Fidelity, signaling progress towards potential approval. Experts view these amendments as positive indicators for BlackRock’s ETF application.
Hot Take: BlackRock Makes Strides in Competitive Bitcoin ETF Race
BlackRock’s amended prospectus for its spot Bitcoin ETF application demonstrates its recognition of competition and provides detailed information on pricing and reporting mechanisms. With at least seven other applicants vying for approval, including Grayscale, the largest Bitcoin trust fund, BlackRock faces stiff competition.
The filing’s inclusion of accounting specifications and a comprehensive analysis of the pricing source indicates BlackRock’s commitment to transparency. The recent amendments made by BlackRock, along with similar actions by other applicants, are seen as positive signs of progress towards potential approval. As the race for Bitcoin ETF approval intensifies, market participants eagerly await the SEC’s decision.
Edited by Liam Kelly
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