BlackRock Files With the US SEC for A Spot-Bitcoin ETF Amid Regulatory Crackdown

On Thursday, June 15, the world’s largest asset manager BlackRock filed for a spot Bitcoin exchange-traded fund (ETF) despite the high-handed regulatory crackdown by the US SEC.

As per the filing submitted to the U.S. Securities and Exchange Commission (SEC), BlackRock has applied for the iShares Bitcoin Trust. According to Bloomberg Intelligence, this is the 33rd time that companies have tried to launch a spot-Bitcoin product. However, previous attempts have been met with resistance from regulators due to concerns about the market and investor safety.

Supporters of cryptocurrencies have always believed that a trading product like this should be available. Interestingly, after the filing was announced, the price of Bitcoin rose by approximately 2.7% to reach around $25,620.

In an email statement to Bloomberg, a BlackRock spokesperson said: “We have filed a registration statement with the SEC, and due to regulatory filing restrictions, we are not able to provide further comment”.

Interestingly, BlackRock has chosen Coinbase as its crypto custodian. This comes despite the fact that the SEC has sued crypto exchange Coinbase last week only over the allegations of custodial rule violations besides other things.

If so, this could mean that the SEC could be settling its case with Coinbase very soon. Several crypto experts have raised an opinion that if the SEC approves the application from BlackRock, it means that the securities regulator is favoring the big players while quashing the small ones.

In the past, the US SEC has rejected multiple applications for spot-Bitcoin ETF even from giants like Vanguard, citing risks of lack of consumer protection. Thus, the possibility of the SEC approving the spot Bitcoin application from BlackRock seems less.

On the other hand, crypto market players like Grayscale have been already working hard to bring an Bitcoin ETF into the market. BlackRock is trying to launch a Bitcoin ETF while Grayscale Investments is involved in a big legal fight with the SEC. Grayscale sued the regulator because it rejected their request to convert their Bitcoin Trust into an ETF. The SEC had concerns about fraud and manipulation in the Bitcoin market.

In the past BlackRock CEO Larry Fink referred to Bitcoin as an instrument of money laundering. However, it turns out that they are now seeing an opportunity in the market.