Yesterday’s news that BlackRock – the world’s largest asset management company – has filed for a spot Bitcoin ETF has been greeted as a landmark move.
Should their request be approved, it will be the first publicly traded spot Bitcoin ETF in the US.
The paperwork was put forward by iShares, an ETF-focused arm of the asset management giant. Per the document, the ETF named ‘iShares Bitcoin Trust’ will be primarily focused on Bitcoin and will reflect its performance. Coinbase Custody will be the trust’s principal custodian.
An excerpt from the prospectus summary of the paperwork reads: “The purpose of the Trust is to own bitcoin transferred to the Trust in exchange for Shares issued by the Trust. Each Share represents a fractional undivided beneficial interest in the net assets of the Trust. The assets of the Trust consist primarily of bitcoin held by the Bitcoin Custodian on behalf of the Trust.”
The news of the spot ETF filing has been widely welcomed by the crypto community, especially at a time when the industry is faced with regulatory setbacks on multiple fronts. Many believe that a major establishment like BlackRock could be a catalyst for regulatory acceptance and broader institutional adoption.
Group chief risk officer at XBE, Coinllectibles and Marvion shares this belief. “The fact that BlackRock, a well-respected and established asset management company, has filed for a Bitcoin ETF could be seen as a positive development in the quest for regulatory approval… It also shows resilience of the public’s interest in crypto,” he said.
Sui Chong, CEO of CF Benchmarks, believes that BlackRock’s proposed ETF has the potential to attract a significant portion of the population that has not yet invested in Bitcoin. He also sees it as a way of bridging the gap between crypto and traditional financial institutions.
“An estimated 20% of Americans have now owned Bitcoin at some point. BlackRock’s proposed ETF potentially offers the other 80% an option that is altogether more familiar and accessible ….. BlackRock’s increasing engagement shows Bitcoin continues to be an asset of interest for some of the world’s largest financial institutions,” he told CoinDesk.
Renewed hope in the quest for US first spot Bitcoin ETF
Although the SEC has approved multiple futures-based Bitcoin ETFs including Proshares (BITO), Valkyrie (BTF), VanEck (BTF) and Teucrium, the quest for the first US spot Bitcoin ETF has been largely unsuccessful. Applications from Grayscale, VanEck, Wisdom Tree and other high-profile fund managers were rejected.
BlackRock’s application has however sparked some optimism in the crypto community. With over $9trn in asset under management (AUM) and a CEO with strong political affiliations in Larry Fink, many believe that the jinx will be broken this time.
Bitcoin rallies above $25k
Bitcoin has surged to $25,572 – a 2.9% increase over the last 24 hours following the positive news. It had earlier slumped below $25k for the first time since March after the FOMC meeting held this week.
Altcoins are also showing decent signs of recovery in a difficult week. Ether is currently up by 2.76%, trading at $1,669. Solana (SOL), Cardano (ADA) and Ripple coin (XRP) are also holding nicely on the 24-hour chart. USDT is well on the path to regaining its peg after yesterday’s scare.