• BlackRock, the world’s largest asset manager, filed paperwork for an iShares Bitcoin Trust ETF.
• The news caused Bitcoin to jump above $25,700 in the hour following the announcement.
• The proposed ETF will be held by Coinbase as custodian and will consist primarily of bitcoin.
BlackRock Filing For Bitcoin ETF
BlackRock, the world’s largest asset management company, has filed paperwork with the U.S. Securities and Exchange Commission (SEC) to create a spot bitcoin exchange-traded fund (ETF). The filing of this ETF is seen as a positive sign for the cryptocurrency market and caused Bitcoin to rise 1.3% past $25.7K shortly after the announcement was made public.
Proposed iShares Bitcoin Trust
The proposed ETF, named the iShares Bitcoin Trust, will have its assets primarily held in bitcoin by a custodian on behalf of the trust. This custodian will be crypto exchange Coinbase and will help provide investors with more access to cryptocurrencies like bitcoin in an efficient manner.
SEC Rejects Previous Applications
This news comes after multiple previous applications from other entities were rejected by the SEC over the last 18 months due to regulatory scrutiny over cryptocurrencies in general and particularly within the US market.
Bitcoin Price Movement
Prior to this announcement, BTC’s price had been hovering just over $25K after dipping below that mark for the first time in three months due to concerns about central bank hawkishness and increasing US regulatory scrutinyof crypto industry players . However, optimism was rekindled upon hearing of Blackrock’s intentionto file for a bitcoin ETF soon after CoinDesk reported on it earlier Thursday afternoon.
The filing of this ETF marks a major step forward for wider adoption of digital assets such as bitcoin globally which could lead to increased liquidity and trading opportunities for both institutional investors as well as retail traders alike in what is becoming a more mainstream asset class every day.