FameEX Hot Topics | SEC Approves Blackrock's Application for Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards the potential approval of a bitcoin exchange-traded fund (ETF) by accepting the application filed by Blackrock, a prominent asset manager. This move indicates that the regulator is prepared to seriously consider the possibility of a bitcoin ETF, which could pave the way for broader acceptance and usage of cryptocurrency assets and products.

The official acceptance of Blackrock's application by the U.S. securities regulator signifies the commencement of an extensive review process that will be closely monitored by the cryptocurrency community and industry. As the world's largest asset management firm, Blackrock's pursuit of a bitcoin ETF through the SEC process sends a strong signal about the future landscape of crypto-based investment products in the United States.

Blackrock submitted its application in mid-June amidst an ongoing crackdown by the SEC on crypto platforms accused of violating U.S. securities laws through the offering of unregistered securities in the form of digital assets. To ensure the security and custody of its Ishares Bitcoin Trust, which primarily consists of bitcoin, Blackrock has selected Coinbase, a leading U.S. cryptocurrency exchange, to serve as the custodian for the trust. The filing also incorporates a surveillance-sharing agreement between Blackrock and Coinbase.

In the past, the Securities and Exchange Commission has consistently denied approval of bitcoin ETFs in the United States, citing concerns such as the potential for market manipulation and inadequate investor protection. However, with the addition of Blackrock's application, as well as 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 receive approval in the United States, a feat already achieved in Canada.

A recent report by the Financial Times revealed that Europe is anticipating its first bitcoin ETF to be launched by the end of July. After experiencing a year-long delay, Jacobi Asset Management is set to publicly list the product, which has received authorization in the Channel island jurisdiction of Guernsey to navigate regulatory obstacles within the European Union.

The acceptance of Blackrock's application by the SEC marks a significant milestone in the ongoing journey towards a bitcoin ETF in the United States. While the review process is expected to be lengthy and thorough, the growing number of applications and Blackrock's influential status provide hope for increased mainstream acceptance and utilization of cryptocurrencies within the country. Additionally, Europe's progress in approving a bitcoin ETF further highlights 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.