BlackRock Resubmits Bitcoin ETF Filing with Coinbase Partnership: SEC Approval in Sight?
TL;DR: BlackRock, the world's largest asset manager, has resubmitted its filing for a bitcoin exchange-traded fund (ETF) with new details and Coinbase as its surveillance-sharing partner. The move aims to secure approval from the SEC, which has yet to approve a spot bitcoin ETF. Other firms, including Fidelity and VanEck, have also refiled applications with Coinbase. Bitcoin has surged over 25% since BlackRock's initial filing, and Coinbase's stock jumped almost 12% in response. Approval of a bitcoin ETF could lead to increased institutional adoption of cryptocurrencies. The industry eagerly awaits the SEC's decision.
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BlackRock, the world's largest asset manager, is making another attempt to launch a bitcoin exchange-traded fund (ETF). The company has resubmitted its filing to the Nasdaq, this time including new details and partnering with Coinbase Global Inc. for a surveillance sharing agreement. The move is seen as a strategic step to potentially secure approval from the U.S. Securities and Exchange Commission (SEC).
While the SEC has previously approved ETFs based on bitcoin futures, it has yet to give the green light to any ETF directly investing in bitcoin itself. BlackRock's latest filing comes after the SEC reportedly deemed previous spot bitcoin ETF applications, filed by BlackRock and other asset managers, as inadequate.
In the updated filing, Nasdaq announced Coinbase as the partner for surveillance sharing, implying that Coinbase will provide market data for orders and trades. This information will be crucial for monitoring and ensuring the integrity of BlackRock's bitcoin ETF. Other firms, including Fidelity, WisdomTree, VanEck, and Invesco, also refiled applications for spot bitcoin ETFs with Coinbase listed as the exchange's surveillance-sharing partner.
Since the initial filing by BlackRock on June 15, bitcoin has experienced a significant rally, surging over 25%. The cryptocurrency's price reached around $31,145 on Monday. Coinbase stock also saw a notable increase, rising almost 12% to approximately $79.93, according to Dow Jones market data.
BlackRock's persistence in seeking approval for a bitcoin ETF reflects the growing interest among institutional investors in the cryptocurrency market. An ETF backed by bitcoin would provide investors with a regulated and convenient way to gain exposure to the digital asset. Given BlackRock's influential position in the asset management industry, the potential approval of its bitcoin ETF could pave the way for greater institutional adoption of cryptocurrencies.
However, it's important to note that the SEC's stance on bitcoin ETFs remains cautious due to concerns about market manipulation and investor protection. The regulatory body is tasked with ensuring that any investment product meets the necessary standards and safeguards before granting approval.
As BlackRock and other asset managers continue their efforts to launch bitcoin ETFs, the industry eagerly awaits the SEC's decision. The approval of a bitcoin ETF would mark a significant milestone for the cryptocurrency market, potentially attracting more institutional investors and further legitimizing the asset class. Until then, investors and enthusiasts will closely monitor developments in this rapidly evolving space.
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