The world's largest investment firm, BlackRock, has applied for a spot Bitcoin ETF in the U.S., which would be a first of its kind if approved by the SEC.
Investment Giant BlackRock is the Latest Financial Firm to File for a Spot Bitcoin ETF
The world's largest investment firm, BlackRock, has applied for a spot Bitcoin ETF in the U.S., which would be a first of its kind if approved by the SEC. The iShares Bitcoin Trust would allow investors to access the Bitcoin market without the complexities and operational burdens of direct ownership. The fund would use Coinbase Custody Trust Company as its Bitcoin custodian and Bank of New York Mellon as its fiat custodian.
The spot Bitcoin ETF would track the CF Benchmarks Index, which updates the Bitcoin price at least every 15 seconds during regular trading hours. BlackRock, with more than $9 trillion in assets under management, argues that the spot Bitcoin market does not need to be regulated for the SEC to approve its proposal, as the regulator has previously relied on the underlying futures market for approving commodity-based trust shares.
BlackRock joins a long list of spot Bitcoin ETF applicants in the U.S., but none have been approved so far. WisdomTree, Fidelity and VanEck are among those who have faced rejection or delays from the SEC. Asset manager Grayscale is also in a legal battle with the SEC to convert its Grayscale Bitcoin Trust into an ETF. Meanwhile, Canada already launched a spot Bitcoin ETF, the Purpose Bitcoin ETF, in early 2021.
