The new BlackRock application for offering a spot Bitcoin exchange-traded fund or ETF has been added to the docket of the Securities and Exchange Commission officially as a part of the change in the ruling process that was proposed. This move they made on Thursday has advanced the SEC to date for the most viewed Bitcoin-related proposal.
The iShares Bitcoin Trust application was filled a month ago, which gave the crypto market some ray of hope, and some other spots were also filled for Bitcoin ETFs by some prominent players, which included firms like Wisdom Tree, Bitwise, Fidelity and Invesco, but their previous application got rejected along with some other contenders.
Last month SEC implied that there was some lack in the application that BlackRock made, so they made another one and, this time revised it with some “surveillance sharing” clause which adds monitoring of the Coinbase crypto exchange and will also report possible illegal activities.
After that, ARK Invest, Fidelity, as well as Valkyrie also updated their application. The value of Bitcoin would be tracked by a spot Bitcoin ETF without the need to directly hold the asset, and it would also be tradable in a stock market.
The Bitcoin ETF, which is based on Bitcoin, featured launched to great fanfare this year; the spot ETF is actually tied to the present cryptocurrency price, and is described as a “holy grail” for the crypto industry. The resistance that SEC showed for approving the applications has been described as a complete disaster.
The new application is on the official calendar, and it will get published in the Federal Register and on the public comment period for 21 days. While this was going on, four different applications were docketed on Friday, which were related to the Cboe BZX Exchange, and they were the first ones who applied in March 2021 for a Bitcoin ETF.
