BlackRock Bitcoin ETF

The most prominent asset manager in the world, BlackRock, has applied for a spot bitcoin ETF that would let investors gain exposure to the cryptocurrency without ever purchasing it. According to a document submitted to the U.S. Securities and Exchange Commission (SEC), the company's iShares Bitcoin Trust will use Coinbase Custody as its custodian. In contrast to the currently available futures-based ETFs that track bitcoin contracts, a spot bitcoin ETF would track bitcoin's actual market price.

The filing is viewed as a positive move for the cryptocurrency market because it demonstrates a reputable and experienced asset manager's interest in and confidence in bitcoin. The SEC is yet to grant any applications for spot bitcoin ETFs raising suspicions over market manipulation, investor protection, and custody issues. Thus, the approval of the ETF is not guaranteed. This is coming after major cryptocurrency exchanges Coinbase and Binance have also been sued by the administration for violating securities regulations.

If adopted, the BlackRock bitcoin ETF could boost demand for bitcoin, expand its liquidity, and reduce the charges and restrictions investors face when entering the cryptocurrency market. Additionally, it might spur more innovation and competition among cryptocurrency platforms and other ETF providers. Following the announcement on Thursday (15/06/2023), bitcoin prices climbed 2%, up to $25,573.