BlackRock, the largest asset manager globally, is reportedly planning to apply for the registration of a Bitcoin exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC).
According to insider sources, progress is being made on the application. To facilitate the future Bitcoin ETF, BlackRock, based in New York City, intends to collaborate with Coinbase Custody, a leading platform for managing and storing cryptocurrencies.
The ETF is expected to receive the necessary infrastructure and security from this partnership. BlackRock also plans to leverage Coinbase Custody’s technology to ensure the integrity of the digital assets held within the ETF.
Additionally, BlackRock aims to utilize information from Coinbase’s spot market to ensure accurate and reliable pricing for the ETF.
The SEC’s stance on ETFs
The SEC has consistently rejected spot Bitcoin ETF proposals due to fraud and market manipulation concerns. The regulatory body has been cautious about Bitcoin ETFs since July 2016, when it rejected a proposal by the Winklevoss brothers.
The SEC expressed concerns about potential price manipulation in the nascent cryptocurrency market and inadequate investor protections. Since then, several other companies, including ARK Investment and 21Shares, have submitted or resubmitted applications.
The SEC remains hesitant to approve spot Bitcoin ETFs, emphasizing the need for robust safeguards against fraud and manipulation. Ongoing litigation involving Binance and Coinbase, along with classifying cryptocurrencies as securities, has further amplified these concerns.
