BlackRock, a colossal asset manager controlling over $9 trillion, has made a move to establish its presence in the Bitcoin market. The New York-based firm has officially submitted an application for a Bitcoin exchange-traded fund (ETF).
Collaborating with Coinbase Custody
If approved, the potential ETF will rely on Coinbase Custody for storage solutions. Further, Coinbase’s spot market data will play a crucial role in determining the asset pricing. While this significant step is taken amidst ongoing crypto regulatory tussles involving the SEC, Binance, and Coinbase, BlackRock continues to advance its crypto agenda. Its association with Coinbase took root last year, offering digital assets to deep-pocketed institutional investors.
Neither Coinbase nor BlackRock has commented publicly on this new application, but such a statement is expected to be forthcoming soon.
Awaiting SEC Approval Amid Prior Rejections
However, it’s essential to note that the SEC has not yet approved any application for a spot Bitcoin ETF, despite numerous submissions. Interestingly, the commission has green-lighted Bitcoin futures ETFs intended for trading. BlackRock’s success hinges on whether this distinction influences the approval process.
Upon approval, the proposed ETF will carry the title of the iShares Bitcoin Trust. According to the application, the trust’s primary assets will be “bitcoin held by a custodian on behalf of the Trust.”
The application filing also mentions that the BlackRock Bitcoin ETF will commence immediately upon the registration becoming effective.
