BlackRock Files New Application for Bitcoin Spot ETF
BlackRock has submitted a new application for a bitcoin spot market ETF after the SEC identified flaws in its initial filing. This would be the first bitcoin spot ETF to receive regulatory clearance if approved. The asset management firm plans to address the SEC’s objections by finalizing a surveillance agreement with Coinbase, the leading US-based crypto exchange. In the amended filing, BlackRock states that the ETF will rely on Coinbase as the custodian and for spot market data. The company aims to establish a surveillance-sharing agreement called the Spot BTC SSA between Nasdaq and Coinbase to enhance market surveillance.
– BlackRock has submitted a new application for a bitcoin spot market ETF.
– The firm plans to address the SEC’s objections by finalizing a surveillance agreement with Coinbase.
– The ETF will heavily rely on Coinbase as the custodian and for spot market data.
– BlackRock aims to establish a surveillance-sharing agreement called the Spot BTC SSA.
– News of BlackRock’s application caused a notable price surge.
Impact on the Market and SEC’s Concerns
News of BlackRock’s application for a bitcoin spot ETF caused a 20% increase in the cryptocurrency’s value. This positive market sentiment persisted despite the SEC finding the initial application inadequate. The SEC has historically expressed concerns about potential fraud or manipulation in the spot market, making registering a bitcoin spot ETF challenging. While no bitcoin spot ETF has been approved, the SEC has approved bitcoin ETFs related to futures trading, highlighting the distinction between the two types of ETFs.
– BlackRock’s application led to a 20% increase in the value of bitcoin.
– The SEC has concerns about fraud or manipulation in the spot market.
– No bitcoin spot ETF has been approved, but futures trading ETFs have been approved.
Understanding ETFs and Other Companies Joining the Race
ETFs allow investors to gain exposure to various assets without direct ownership. A bitcoin ETF, in particular, allows investors to participate in the price movement of bitcoin without owning the cryptocurrency itself. BlackRock’s revised application has spurred other companies, such as Fidelity, to file their own ETF applications. Fidelity has partnered with Coinbase for similar services, and its exchange operator, Cboe, modified its application for a bitcoin spot ETF on the same day as the Wall Street Journal report.
– ETFs enable investors to gain exposure to assets without direct ownership.
– A bitcoin ETF allows investors to participate in bitcoin’s price movement without owning it.
– Other companies, like Fidelity, have filed their own ETF applications.
Hot Take
BlackRock’s new application for a bitcoin spot ETF and the positive market reaction highlight the growing demand for investment products related to cryptocurrencies. The company’s focus on addressing the SEC’s concerns and partnering with Coinbase shows a concerted effort to mitigate regulatory risks. As more companies enter the race to launch their own bitcoin spot ETFs, the market for cryptocurrency investment products is set to expand further.
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