Bitcoin exchange fund: Blackrock application now officially pending

The US Security and Exchange Commission (SEC) has indicated the bitcoin (BTC) exchange traded fund (ETF) application from Blackrock. This certainly does not mean that the application has already been approved. Worse, it means the SEC will consider the filing. This marks the first step towards a possible launch of the ETF.

SEC examines bitcoin ETF

Although it is the first step in a long bureaucratic process, it is a good sign. On Friday, the financial watchdog also indicated that it would be processing other bitcoin ETF applications. Examples include applications from Wise Origin, WisdomTree, VanEck, and Invesco Galaxy.

On June 15, Blackrock filed its application for the ETF, or exchange-traded fund. This was big news and kicked off a significant price increase of bitcoin. In the wake of the filing, a slew of other investment funds also filed their applications. As Blackrock, the world’s largest financial institution, gears up to launch the spot bitcoin ETF, there is new hope that such a fund will actually materialize.

Should the American ETF come into existence, this would not be a global first. There are already several spot bitcoin ETFs in existence. Including in Canada and Europe. For this reason, the American bank JPMorgan believes that the ETF will make little difference to the adoption and the bitcoin price. The listed companies in Canada and Europe do not get any absurd institutional interest. However, the fact that this time it concerns Blackrock gives enough reason to cautiously believe that it is a bit more nuanced this time.

Bridge between crypto and TradFi

Another interesting point is the partnership with Coinbase, which Blackrock proposes in its application. For example, the American crypto exchange will supervise and also serve as a custodian. With this, the two entities build a nice bridge between the crypto world and the traditional financial system.

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We still have to wait for the SEC’s final decision on Blackrock’s ETF filing. 45 days the SEC has time to make a decision. So put August 12 in your calendar. Then we may hear important news. However, the committee has several options to extend this period. The actual deadline, including all possible extensions, is February 23, 2024.

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