BlackRock has presented an application to create a spot Bitcoin exchange-traded fund (ETF). The investment company is the largest in the world and would be the first spot cryptocurrency ETF in the United States, if approved.
according to a presentation of the Nasdaq stock exchange with the US Securities and Exchange Commission (SEC), Coinbase Custody Trust Company would be the custodian of the fund’s Bitcoin holdings and Bank of New York Mellon would be the custodian of its fiat. The bottom iShares Bitcoin Trust of BlackRock would trade as commodity-based trust stocks.
According to the request filed on June 15:
“The Shares have been designed to remove the obstacles posed by the complexities and operational burdens that come with a direct investment in Bitcoin.”
The Bitcoin price will update “at least” every 15 seconds during regular market days using the CF Benchmarks Index.
The Blackrock ETF filing is live, and it’s *SPOT*
“The assets of the Trust consist primarily of bitcoin held by a custodian on behalf of the Trust”.
—Swan (@Swan) June 15, 2023
The document notes that previously approved spot exchange-traded products in the commodity and foreign exchange markets “are generally unregulated and […] the Commission relied on the underlying futures market” as the “basis for approving” trust actions in the past. Thus:
“As such, the significant size regulated market test does not require that the bitcoin spot market be regulated for the Commission to approve this proposal.”
The SEC has so far not approved any spot Bitcoin ETFs, despite numerous applicants. Grayscale took the SEC to an appeals court to defend the strength of Bitcoin futures after the securities regulator rejected his request to create a spot Bitcoin ETF.
ARK Invest, of Cathie Wood, and the European investment firm 21Shares they have also been pushing to get your spot Bitcoin ETF approved, submitting its third applications in April.
The world’s first spot-traded Bitcoin ETF was the Canadian Purpose Bitcoin ETF, launched in early 2021.
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