• Fri. Dec 8th, 2023

SEC Formally Accepts BlackRock Spot Bitcoin ETF Application for Review

SEC Formally Accepts BlackRock Spot Bitcoin ETF Application for Review

BlackRock’s application to offer a spot bitcoin exchange-traded fund (ETF) has been added to the official docket as part of the Securities and Exchange Commission’s proposed rule change process. The move, recorded late Thursday, advances the SEC’s most closely watched bitcoin-related proposal to date.

The application for the iShares Bitcoin Trust was filed about a month ago, prompting a new wave of optimism across the crypto market, and additional filings for spot bitcoin ETFs from several major players, including firms such as Invesco, Wisdom Tree and BitWise. , and Fidelity—which had its previous application rejected last year, along with applications from other contenders.

When the SEC signaled BlackRock’s application was lacking last month, the company filed an updated application adding a “monitoring sharing” clause that would include monitoring the Coinbase crypto exchange and reporting possible illegal activity.

Soon after, Valkyrie updated its application with the same provision, as did Fidelity and ARK Invest.

A spot bitcoin ETF will track the value of bitcoin without the need to directly hold the asset. It can also be traded on a traditional stock exchange.

While a bitcoin ETF based on bitcoin futures launched with much fanfare earlier this year, a spot ETF linked to the cryptocurrency’s current price has been described as the “holy grail” for the industry. The SEC’s continued resistance to approving one over the past several years has been described as a “complete and utter disaster.”

With BlackRock’s application now on the SEC’s official calendar, it will be published in the Federal Register and begin a 21-day public comment period.

Meanwhile, four other applications were docketed on Friday by the Cboe BZX exchange, the first firm to apply for a bitcoin ETF in March 2021, including Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, VanEyck Bitcoin Trust and Invesco Galaxy. Bitcoin ETF, which will enter a three-week comment period.

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