The $10 trillion wealth management giant BlackRock on Thursday filed with the Securities and Exchange Commission (SEC) to launch a Bitcoin spot ETF, a product yet to be launched in the United States.
BlackRock plans to partner with Coinbase to offer bitcoin custody backing funds, similar to the company’s bitcoin Trading service Announced last year.
BlackRock ETF Bid
As report According to CNBC, the asset management firm has filed with the SEC to launch the iShares Bitcoin Trust, which will give investors easy access to bitcoin from the Wall Street giant.
“The Trust aims to generally reflect the price performance of Bitcoin,” the paper said. filing. “The trust’s assets consist primarily of bitcoins held by Bitcoin custodians on behalf of the trust.
The filing added that the shares in the trust are intended to constitute a simple means of investing in bitcoin, rather than trading or holding bitcoin peer-to-peer.
Other companies have tried over the years to launch similar products, but have been consistently rejected by the SEC. In contrast, the agency has issued multiple approvals. Bitcoin Futures ETFbacked by Bitcoin futures contracts rather than actual BTC.
The SEC prefers futures contracts because their underlying markets are monitored by the Chicago Mercantile Exchange (CME) and can help detect market manipulation.
Can BlackRock succeed?
Grayscale’s spot ETF proposal was rejected last year after it attempted to form a monitoring sharing agreement with the CME bitcoin futures market, but the SEC deemed it not closely related to the spot bitcoin market.
Grayscale subsequently filed a lawsuit with the SEC, and the judges overseeing the case said: Skepticism Over the SEC allegations.
BlackRock said it references the CF benchmark index to determine the value of bitcoin in the trust daily.
The index tracks Bitcoin prices across Coinbase, Bitstamp, iBit, Kraken, Gemini, and LMAX Digital, striving to be “manipulation resistant” by not including “futures prices in its methodology”.
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