BlackRock has filed for a spot Bitcoin Exchange Traded Fund (ETF) and experts suggest that the US Securities and Exchange Commission (SEC) is more likely to approve the application as its concerns have been largely addressed. The market for spot Bitcoin ETF is prone to fraud and manipulation, according to the US SEC. This is why the agency has been turning down proposals for this type of investment product.
The commission has not approved any ETFs that track the price of Bitcoin directly, but only those that are based on Bitcoin futures contracts. Many market experts concur that BlackRock has a good chance of getting its ETF approved this time. This could be a hugely positive development for the crypto industry, which has been struggling with recent losses.
BlackRock’s Application Helped Bitcoin Breakthrough the $30K Wall
The spot BTC Exchange Traded Fund (ETF) attracted the interest of major investment managers such as BlackRock, who filed for registration recently. This boosted the confidence of the crypto market and helped the biggest digital currency to reclaim the important $30k price level.
The move by BlackRock is expected to be a game-changer for the crypto industry as it will allow investors to invest in Bitcoin without actually owning it. The ETF will track the price of Bitcoin and will be traded on major stock exchanges.
The crypto industry has been facing a lot of challenges lately due to regulatory crackdowns and environmental concerns. However, this move by BlackRock can help restore investor confidence in cryptocurrencies and lead to a recovery from recent losses.
The ETF will provide investors with an easy way to invest in Bitcoin without worrying about security issues or storage problems.
Experts say that BlackRock’s Bitcoin ETF application stands out from the previous ones. They point out some unique features that could make it more likely to get the green light. They spotted a major difference in the process, Nasdaq exchange where iShares Bitcoin Trust would be listed might enter into a surveillance-sharing agreement.
The SEC has denied the proposals of several companies, including Invesco, WisdomTree, Bitwise, and Valkyrie, to launch ETFs that track the price of Bitcoin directly.