The Securities and Exchange Commission has officially accepted BlackRock’s application for approval of a Bitcoin exchange-traded fund. This formal submission to the SEC advances BlackRock’s proposal, which would allow direct investment in Bitcoin through the ETF. The SEC’s acceptance of the application signals they will thoroughly evaluate BlackRock’s Bitcoin ETF, the most anticipated cryptocurrency investment product submitted to the regulatory agency thus far.
BlackRock filed their application for the iShares Bitcoin Trust with the Securities and Exchange Commission almost one month ago. This sparked renewed optimism in the cryptocurrency market, as additional companies like Invesco, Wisdom Tree, Bitwise, and Fidelity also submitted applications for spot Bitcoin exchange-traded funds. Fidelity’s previous Bitcoin ETF application was rejected last year, along with proposals from other firms. However, BlackRock’s high-profile filing has created hope that the SEC may now approve a Bitcoin ETF, providing mainstream investor access to the cryptocurrency through a regulated investment vehicle.
Last month, the Securities and Exchange Commission indicated deficiencies in BlackRock’s initial Bitcoin exchange-traded fund (ETF) application. BlackRock responded by filing an amended application that included a surveillance-sharing agreement with the oinbase">Coinbase cryptocurrency exchange. This agreement requires oinbase">Coinbase to monitor trading activity and report any potential illegal behaviors to BlackRock and the SEC.
Following BlackRock’s lead, other companies like Valkyrie, Fidelity, and ARK Invest updated their Bitcoin ETF applications to also incorporate surveillance-sharing agreements with crypto exchanges.
A spot Bitcoin ETF would allow mainstream investors to gain exposure to Bitcoin prices without having to directly hold the cryptocurrency. The ETF shares could be bought and sold on traditional stock exchanges, providing accessible liquidity. Approval of a spot Bitcoin ETF hinges on satisfying the SEC’s concerns around cryptocurrency market monitoring and oversight.
While a Bitcoin futures exchange-traded fund (ETF) was approved earlier this year, the cryptocurrency industry has seen a spot Bitcoin ETF as the “holy grail” for mainstream adoption. A spot ETF tracks current Bitcoin prices directly. The Securities and Exchange Commission has resisted approving a spot Bitcoin ETF for years, leading to frustration in the crypto sector.
Now that BlackRock’s spot Bitcoin ETF application is formally on the SEC’s calendar, it will be published in the Federal Register. This triggers a 21-day public comment period, allowing stakeholders to weigh in.
Additionally, the SEC docketed four other spot Bitcoin ETF applications on Friday related to the Cboe BZX Exchange. These proposals are from Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, VanEck Bitcoin Trust, and Invesco Galaxy Bitcoin ETF. They will also undergo a three-week public comment period.
With several major firms seeking SEC approval, momentum continues building for a spot Bitcoin ETF that could significantly impact cryptocurrency adoption.
