BlackRock, Asset Management Giant, Applies for Bitcoin Spot ETF

BlackRock’s Bet on Bitcoin

BlackRock, a titan in the asset management industry, submitted an application to the U.S. Securities and Exchange Commission (SEC) last Thursday (June 15) for a Bitcoin spot Exchange-Traded Fund (ETF). This move signifies BlackRock’s confidence in the asset class, despite recent regulatory pressure.

As of now, no Bitcoin ETF exists in the United States. Although the SEC has approved several Bitcoin futures ETFs for listing in the past, it has never greenlit a product linked to Bitcoin spot prices.

Partnering with Coinbase

According to the submitted documents, BlackRock’s “iShares Bitcoin Trust” will use data provided by Coinbase’s custody services. BlackRock has been collaborating with this cryptocurrency exchange since the middle of last year to launch financial products exposed to cryptocurrencies.

（Image via Financial News）

A Significant Move Amidst Regulatory Headwinds

The global cryptocurrency industry is facing regulatory headwinds. The SEC recently accused both Coinbase and Binance of violating securities laws and operating unauthorized securities exchanges. BlackRock’s application during this turbulent time carries symbolic importance for the cryptocurrency industry.

Matt Zhang, founder of Hivemind, suggests that large-scale asset managers like BlackRock choosing to apply during a period of tightened regulations “might mean they’ve done sufficient due diligence and see a high chance of approval from regulatory bodies.”

David Tawil, co-founder and president of ProChain Capital, believes BlackRock’s application for a Bitcoin ETF under the current regulatory environment “clearly demonstrates institutional confidence in Bitcoin, at the very least.”

（Image via Shutterstock）

A Potential Boon for the Crypto Market

This news could be a positive sign for the crypto industry because to apply for a cryptocurrency ETF listing, one must believe in the long-term prospects of this asset class.

Even though SEC Chair Gary Gensler has named Binance Coin, Solana, Cardano, Polygon, and several other cryptocurrencies as “securities” in the ongoing lawsuits against Binance and Coinbase, he has also repeatedly stated that Bitcoin is the only cryptocurrency he is prepared to publicly define as a “commodity” rather than a “security.”

Peter Eberle, Chief Investment Officer at Castle Funds, suggests that the SEC’s recent actions aren’t entirely negative for Bitcoin. BlackRock may see opportunities, hence the decision.

As of deadline, Bitcoin was trading at $26,430, falling about 0.14% in 24 hours. Bitcoin has risen 50% so far this year, though it is still more than 60% lower than its 2021 historical high.

Keywords: BlackRock, Bitcoin, ETF, SEC, Coinbase, Binance, Gary Gensler, asset management, cryptocurrency, regulation, spot prices, futures, iShares Bitcoin Trust