FameEX Hot Topics | SEC Approves Blackrock's Application for Bitcoin Exchange-Traded Fund (ETF)

The U.S. Securities and Exchange Commission (SEC) has taken a noteworthy step towards potentially approving a bitcoin exchange-traded fund (ETF) by accepting Blackrock's application. This decision demonstrates the regulator's readiness to seriously consider the prospect of a bitcoin ETF, which could facilitate broader acceptance and utilization of cryptocurrency assets and products.

The SEC's acceptance of Blackrock's application marks the initiation of an extensive review process that will be closely monitored by the cryptocurrency community and industry. Being the world's largest asset management firm, Blackrock's pursuit of a bitcoin ETF through the SEC sends a strong message about the future landscape of crypto-based investment products in the United States.

Blackrock submitted its application in mid-June amid an ongoing crackdown by the SEC on crypto platforms accused of violating U.S. securities laws through the sale of unregistered securities in the form of digital assets. To ensure the secure custody of its Ishares Bitcoin Trust, which primarily holds bitcoin, Blackrock has chosen Coinbase, a leading U.S. cryptocurrency exchange, as the trust's custodian. The filing also incorporates a surveillance-sharing agreement between Blackrock and Coinbase.

Historically, the SEC has consistently denied approval of bitcoin ETFs in the United States due to concerns such as potential market manipulation and insufficient investor protection. However, with Blackrock's application, along with those from other prominent entities such as Bitwise, Wisdom Tree, Wise Origin Bitcoin Trust, VanEck, Invesco, and Fidelity, there is growing optimism within the crypto space that a bitcoin ETF will eventually gain approval in the United States, as it has already done in Canada.

A recent report from the Financial Times revealed that Europe is anticipating the launch of its first bitcoin ETF by the end of July. After facing a year-long delay, Jacobi Asset Management is preparing to list the product publicly. The ETF has received authorization in Guernsey, a jurisdiction in the Channel Islands, in order to navigate regulatory hurdles within the European Union.

The SEC's acceptance of Blackrock's application represents a significant milestone in the ongoing journey towards a bitcoin ETF in the United States. Although the review process is expected to be extensive and thorough, the increasing number of applications and Blackrock's influential position instill hope for greater mainstream acceptance and utilization of cryptocurrencies within the country. Furthermore, Europe's progress in approving a bitcoin ETF underscores the global demand and interest in these innovative investment products.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.