BlackRock Files Registration Statement for Spot Bitcoin ETF with SEC

BlackRock Files Registration Statement for Spot Bitcoin ETF with SEC

BlackRock, a prominent investment management firm, has taken a significant step towards launching a spot bitcoin exchange-traded fund (ETF) by filing a registration statement with the U.S. Securities and Exchange Commission (SEC) on Thursday.

The proposed ETF, named the iShares Bitcoin Trust, will be structured as a Delaware statutory trust and will primarily hold bitcoin assets. These assets will be held by a custodian, Coinbase Custody Trust Company, designated to ensure their safekeeping.

The ETF will be benchmarked against the CME CF Bitcoin Reference Rate – New York Variant, which is provided by CF Benchmarks, an FCA-authorized crypto index Administrator and a subsidiary of Kraken.

Sui Chung, CEO of CF Benchmarks, expressed that BlackRock’s proposed ETF could offer the remaining 80% of Americans who haven’t owned bitcoin an option that is more familiar and accessible compared to direct ownership. He highlighted that approximately 20% of Americans have already had exposure to bitcoin.

It is noteworthy that BlackRock had previously launched a private trust in 2022, catering to institutional clients in the United States seeking exposure to spot bitcoin.

This recent filing by BlackRock is significant as the SEC has yet to approve a spot bitcoin ETF. The regulatory body has previously rejected Grayscale’s proposal to convert its flagship GBTC fund into a spot bitcoin ETF.

Other entities, such as 21Shares and Cathie Wood’s Ark Investment, have been attempting to register a spot bitcoin ETF since 2021.

The market will closely monitor the progress of BlackRock’s filing, as its approval could mark a significant milestone in the availability and accessibility of bitcoin investment options for a broader range of investors.