The World Largest Asset Manager BlackRock Set to File Application for Bitcoin ETF

BlackRock, the largest asset manager globally, is reportedly on the verge of submitting an application for a Bitcoin exchange traded fund (ETF). An individual familiar with the matter has revealed that BlackRock will be utilizing Coinbase Custody, a service offered by the popular crypto exchange Coinbase, for the ETF. Additionally, the asset manager will rely on Coinbase’s spot market data for pricing purposes. When contacted for a statement, Coinbase declined to comment.

BlackRock’s collaboration with Coinbase began around the middle of last year with the objective of facilitating direct crypto access for institutional investors. However, it remains uncertain whether the forthcoming ETF will be based on the spot or futures market. Inquiries made to BlackRock regarding this matter have gone unanswered thus far.

The Securities and Exchange Commission (SEC), the regulatory body responsible for overseeing ETFs in the United States, has consistently rejected applications for spot bitcoin ETFs until now. Nevertheless, it has granted approval for several bitcoin futures ETFs to enter the trading market.

The potential launch of a Bitcoin ETF by BlackRock, a financial giant with more than $9 trillion in assets under management, could have far-reaching implications for the cryptocurrency market. An ETF would make it easier for investors to gain exposure to Bitcoin without directly owning the digital asset. This would be particularly appealing to institutional investors who have been showing increasing interest in the crypto space.

ETFs are investment funds traded on stock exchanges, which allow investors to buy or sell shares representing ownership of a particular asset or a basket of assets. Bitcoin ETFs, in particular, aim to track the price of Bitcoin, providing investors with a regulated and secure means to invest in the cryptocurrency.

The entry of BlackRock into the Bitcoin ETF arena would undoubtedly add a level of credibility to the industry. BlackRock’s size, influence, and reputation in the financial world could potentially pave the way for greater institutional adoption of cryptocurrencies. It is worth noting that other asset managers, including Fidelity and VanEck, have also expressed interest in launching Bitcoin ETFs.

However, it is important to bear in mind that regulatory hurdles remain a significant challenge for the introduction of Bitcoin ETFs in the United States. The SEC has consistently cited concerns over market manipulation, custody, and investor protection as reasons for rejecting spot-based ETF applications. Nevertheless, the approval of bitcoin futures ETFs may signal a shifting sentiment within the regulatory framework.

As the news of BlackRock’s impending application for a Bitcoin ETF spreads, market participants will be closely monitoring developments and awaiting further information. If successful, the BlackRock Bitcoin ETF could mark a milestone in the mainstream acceptance of cryptocurrencies, potentially opening the floodgates for more widespread institutional investment in the burgeoning asset class.

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