Asset management giant, BlackRock is up for deep divingup to deep dive into the crypto space. The firm filed for a Bitcoin exchange-traded fund (ETF). The US crypto exchange was chosen as the custodian for the product. It will be a spot Bitcoin ETF, and given the history of products regarding SEC approval, the skepticism remains there. However, if it gets approval, the ETF will be the first spot Bitcoin ETF in the United States.
BlackRock Stepping up in Crypto Space
The Nasdaq Stock Exchange filed with the United States Securities and Exchange Commission (SEC) for the iShares Bitcoin Trust of BlackRock on Thursday, June 15. Coinbase Custody Trust Company would be serving as the custodian for the Commodity-Based Trust Shares product. In contrast, the prominent bank in the US, the Bank of New York Mellon, would serve as the fiat custodian.
The broader crypto community and the US regulator had been in a tussle with each other on the heated issue of spot bitcoin ETF. The SEC has yet to approve the financial product filed to offer by the asset manager or any spot ETF.
BlackRock would be able to facilitate its investor’s and customers’ crypto exposure with its product. As noted in the filing, the sShares will serve as a medium for investors to make investments in Bitcoin without buying the crypto asset.
The spot bitcoin ETFs did not have an easy road in the United States. Many requests for the product from multiple companies, even the prominent ones, were denied. Arguments and opposition from the entities against the decision of the regulator were registered, where Grayscale went legal and filed a lawsuit against the SEC.
This Bitcoin ETF Filing Could Make a Mark
Grayscale filed for conversion of its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund. However, the SEC denied the approval for the request. The investment firm then filed a lawsuit against the US regulator. The case is expected to see an outcome in the upcoming months this year.
Should the ETF from BlackRock get approval, the market is expected to witness multiple applications, given that many entities are seeking to launch spot bitcoin funds.
Coinbase was chosen as the custodian for the digital asset reserve of BlackRock’s ETF. Both entities came together last year when the fund manager focused on expanding its offerings by bringing the crypto offerings to institutional investors.
The timing of asset management firms seeking their own spot in Bitcoin ETF collides with the ongoing trembles in the crypto market, with the price of many cryptocurrencies fluctuating.
Major cryptocurrency exchanges, including the one BlackRock had partnered with, Coinbase, were charged by the SEC for unregistered securities offerings.
