The United States Securities and Exchange Commission (SEC) has accepted BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF), marking the commencement of the official review process. This comes after the SEC’s acknowledgment of a similar application by Bitwise. The move signals the SEC’s willingness to explore the concept of a spot Bitcoin ETF and evaluate its potential impact on the market.
ETFs are investment funds that track specific indexes and are commonly traded on exchanges. In the cryptocurrency realm, a cryptocurrency ETF mirrors the value of one or multiple digital tokens and includes a range of cryptocurrencies.
BlackRock’s entry into the spot Bitcoin ETF race is significant given its stature in the financial industry. The company’s filing included a “surveillance-sharing” agreement with Coinbase, a leading cryptocurrency exchange.
The competition among companies seeking to launch a Bitcoin ETF in the United States is viewed as a positive development for the crypto industry. Multiple filings increase the chances of success, and diverse proposals allow the SEC to assess different strategies and concerns.
While the SEC has yet to approve a spot Bitcoin ETF in the United States, Canada has already approved several significant funds. Purpose Bitcoin, 3iQ CoinShares, and CI Galaxy Bitcoin are among the approved funds in Canada.