2023-06-16 15:33:16
Dhe world’s largest asset manager Blackrock submitted an application for a Bitcoin ETF on Thursday. Coinbase, the largest crypto exchange in the United States, would then act as the custodian. It should be traded upon admission to the Nasdaq technology exchange. If approved, it would offer investors much easier access to digital currencies. “This is intended to provide an easy way to make an investment similar to investing in Bitcoin, rather than acquiring, holding and trading Bitcoin directly on a peer-to-peer or other basis or through a digital asset exchange.” , says the application.
However, the motions have met with opposition from regulators, who have in the past raised concerns about the market and lack of investor protection, among other things. The SEC has so far refused to approve the launch of a spot Bitcoin ETF in the US.
The regulator is currently in a legal battle with Grayscale over whether the company can convert its Grayscale Bitcoin Trust into an ETF. A decision in this case is expected later this year. Several other companies have submitted and later withdrawn applications to set up bitcoin spot funds. If the SEC relented, a flood of such products could hit the market.
ETFs typically take months to launch after initial filing, if they even start trading. BlackRock’s proposed fund is likely to face stiff SEC opposition, and the filing could be withdrawn before an ETF even launches, Aisha Hunt, head of wealth management law firm Kelley Hunt & Charles, told CNBC. “We have filed a registration statement with the SEC and are unable to comment further due to regulatory filing restrictions,” a BlackRock spokeswoman said in an emailed statement.
The SEC previously sued Coinbase, claiming the company operates an illegal exchange. The company has said that the lack of clear rules for the digital asset industry is hurting America’s economic competitiveness. The authority also took action against the world’s largest crypto exchange Binance.
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