As published on the SEC website, the application for the creation of the iShares Bitcoin Trust, which will be in charge of the issuance and custody of BlackRock’s Bitcoin spot ETFs, has been formally accepted on July 13.
The United States Securities and Exchange Commission (SEC) agreed to review BlackRock’s application for a spot Bitcoin ETF and formally initiated that process for this proposed exchange-traded fund (ETF). Along with BlackRock’s, it has also formally admitted other applications.
As published on the SEC website, the application for the creation of the iShares Bitcoin Trust, which will be in charge of the issuance and custody of BlackRock’s Bitcoin spot ETFs, has been formally accepted on July 13. In addition to BlackRock’s application, the SEC also announced that it is reviewing other Bitcoin-related funds, including the Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, VanEck Bitcoin Trust, and the Invesco Galaxy Bitcoin ETF.
Blackrock’s Order
In mid-June, BlackRock, the largest financial institution on the planet with more than 10 trillion investment assets, formalized the application for a Bitcoin spot ETF before the SEQ. Days later, the Commission identified flaws in the request, for which reason it was rejected. The financier resubmitted the application at the beginning of July, which has been recently accepted.
The approval of the applicationand BlackRock on the part of the SEC appears to show a willingness to explore the concept of a spot Bitcoin ETF and assess its potential impact on the market. Cabo note that this is only the first step, since a thorough regulatory review will now come.
BlackRock has a record of ETF approvals of 575 approved and only 1 rejected, so this application approval seems to show a good path.
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ETFs are publicly traded mutual funds that track the performance of a specific index, in this case, bitcoin. In the cryptocurrency realm, a cryptocurrency ETF allows investors to access the value of digital tokens and a variety of cryptocurrencies in a single financial product.
At the moment, the US market does not have a Bitcoin spot ETFs. Its approval could unleash a wave of institutional investment on the first cryptocurrency, and consequently raise its price.
Source: Ambito
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