The SEC Examines Bitcoin ETF Application from Blackrock
The American Securities and Exchange Commission (SEC) has recently indicated that it will be examining the bitcoin (BTC) exchange-traded fund (ETF) application submitted by Blackrock. While this does not mean that the application has been approved, it signifies the first step towards a potential launch of the ETF.
Examining the Bitcoin ETF
This initial stage in the bureaucratic process is a positive development. The SEC has also announced that it will be processing other bitcoin ETF applications from companies such as Wise Origin, WisdomTree, VanEck, and Invesco Galaxy.
Blackrock filed its ETF application on June 15, which generated significant excitement in the market and led to a surge in bitcoin’s price. Following this, several other investment funds also submitted their applications. As the world’s largest financial institution, Blackrock’s involvement increases the hope that a spot bitcoin ETF could become a reality.
It should be noted that the introduction of an American ETF would not be a global first, as spot bitcoin ETFs already exist in Canada and Europe. In fact, JPMorgan suggests that the American ETF’s impact on adoption and the bitcoin price may be limited. Currently, the listed companies in Canada and Europe do not attract substantial institutional interest. Nevertheless, the involvement of Blackrock does create cautious optimism that the outcome may be different this time.
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The Bridge between Crypto and Traditional Finance (TradFi)
One interesting aspect mentioned in Blackrock’s ETF application is a proposed partnership with Coinbase. The American cryptocurrency exchange would supervise and serve as the custodian of the fund, bridging the gap between the crypto world and traditional financial systems.
The final decision on Blackrock’s ETF filing is still pending, and the SEC has 45 days to reach a conclusion. Therefore, August 12 is an important date to keep an eye on for potential news. However, the committee does have the option to extend this period, with the final deadline, including all possible extensions, set for February 23, 2024.