BlackRock, the world’s largest investment company with $10 trillion in assets, has submitted an application for a Bitcoin spot exchange traded fund (ETF), marking a significant milestone in the United States. This would be the first crypto spot ETF in the country, pending approval.
The Nasdaq stock exchange, in its filing with the U.S. Securities and Exchange Commission, has stated that Coinbase Custody Trust Company will act as the custodian for the fund’s Bitcoin holdings, while Bank of New York Mellon will be responsible for custody of fiat currency. BlackRock’s iShares Bitcoin Trust will be traded as Commodity-Based Trust Shares.
To ensure accurate pricing, the Bitcoin price will be updated at least every 15 seconds during regular market trading.
Unlike previously approved spot exchange traded products in commodities and currency markets, which were largely unregulated, the approval of trust shares for this proposal by the Commission will not depend on the regulation of the spot Bitcoin market. The Commission has historically relied on the underlying futures market to approve such products.
Despite the existence of multiple applicants, the SEC has yet to approve a spot Bitcoin ETF. Grayscale, after the SEC rejected its application for a spot Bitcoin ETF, took the matter to appeals court to argue for the reliability of Bitcoin futures.
If BlackRock’s proposal is granted approval, the company will be able to purchase BTC directly from the spot market, potentially through platforms like Coinbase, on behalf of its clients.
To ensure accurate pricing, the Bitcoin price will be updated at least every 15 seconds during regular market trading.
Unlike previously approved spot exchange traded products in commodities and currency markets, which were largely unregulated, the approval of trust shares for this proposal by the Commission will not depend on the regulation of the spot Bitcoin market. The Commission has historically relied on the underlying futures market to approve such products.
Despite the existence of multiple applicants, the SEC has yet to approve a spot Bitcoin ETF. Grayscale, after the SEC rejected its application for a spot Bitcoin ETF, took the matter to appeals court to argue for the reliability of Bitcoin futures.
If BlackRock’s proposal is granted approval, the company will be able to purchase BTC directly from the spot market, potentially through platforms like Coinbase, on behalf of its clients.
