The formal action implies that the federal government will give the carefully scrutinized application a serious consideration.
In connection with its proposed rule change process, the Securities and Exchange Commission has put BlackRock’s application to sell a spot Bitcoin exchange-traded fund (ETF) to its official docket. The decision, which was made late on Thursday, moves forward the SEC proposal that has received the most attention to far and is tied to Bitcoin.
The iShares Bitcoin Trust application was submitted almost a month ago, which sparked a new wave of optimism in the cryptocurrency market and additional filings for spot Bitcoin ETFs from a number of other significant players, including companies like Invesco, Wisdom Tree, Bitwise, and Fidelity—which had its previous application rejected along with those from other contenders last year.
When the SEC indicated last month that BlackRock’s application was deficient, the company submitted a new application and included a « surveillance sharing » language that required the Coinbase cryptocurrency exchange to monitor and report any potentially unlawful activities.
Soon after, ARK Invest, Fidelity, and Valkyrie all changed their applications to include the same clause.
Without requiring that the asset be held directly, a spot Bitcoin ETF would monitor the value of the cryptocurrency. Additionally, it might be traded on a conventional stock exchange.
A spot ETF, which is based on the current price of the cryptocurrency, has been referred to be the industry’s « holy grail » despite the fact that a Bitcoin ETF based on Bitcoin futures debuted earlier this year to much excitement. The SEC’s persistent refusal to approve one over the past few years has been called a « complete and utter disaster. »
The SEC’s official calendar currently shows that BlackRock’s application will be published in the Federal Register and start a 21-day public comment period.
The Cboe BZX Exchange, which submitted the first application for a Bitcoin ETF in March 2021, was also the subject of four additional applications docketed on Friday. These include the Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, VanEck Bitcoin Trust, and Invesco Galaxy Bitcoin ETF, all of which will now enter a three-week comment period.
