The largest investment company globally is eyeing the first crypto spot ETF in the United States
BlackRock has filed an application for a Bitcoin spot exchange-traded fund (ETF). None ETFs of this kind have been approved in the US up to date.
According to the filing, Coinbase Custody Trust Company would be the custodian of the fund’s Bitcoin holdings while Bank of New York Mellon would be responsible for fiat custody. BlackRock’s iShares Bitcoin Trust would be traded as Commodity-Based Trust Shares “designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in Bitcoin.”
Crypto ETFs are funds that track the price of a select individual cryptocurrency or a crypto mix. They are traded in exactly the same way a common stock is traded on traditional exchanges. Therefore, such instruments expand the potential pool of investors and eliminate the bars to market entry for a newcomer.
It is expected that the Bitcoin price will be updated every 15 seconds or sooner during regular market trading. The BlackRock Bitcoin spot ETF will be using the CF Benchmarks Index for reference.
The SEC has not approved any spot Bitcoin ETFs so far, despite numerous applicants. Instead, the regulator accelerated its crackdown on crypto exchanges, suing Binance and Coinbase in the same week.
However, the crypto enthusiasts don’t give up. For instance, Grayscale currently appeals against the SEC’s decision after the regulator rejected its application to create a spot Bitcoin ETF.
Cathie Wood’s ARK Invest and European investment firm 21Shares are also continuously and patiently pressing for spot Bitcoin ETF approval, having filed their third consecutive applications in April.
At the same time, the innovative crypto-related financial instrument is already present in global markets. Thus, Canada’s Purpose Bitcoin ETF was set up back in early 2021.
We have previously experimented with AI to Investigate Top Anonymous Bitcoin Holder (We Call Them Dave).