BlackRock has resubmitted a proposal to the U.S. Securities and Exchange Commission (SEC) outlining the creation of a bitcoin BTC -0.80% exchange-traded fund (ETF).
Coinbase Global Inc. will serve as market watchdog, backing the world’s largest asset manager’s plans to launch a bitcoin ETF, according to a revised document filed Monday.
The SEC previously believed that the issuer’s preliminary filing was insufficient and lacked necessary information. In response, BlackRock and several other firms made more specific changes to their apps.
Firms including Fidelity Investments, Invesco, VanEck, 21Shares and WisdomTree have also revised their proposals in the past week.
Nasdaq’s new filing aims to address regulatory concerns raised by the SEC, proposing a comprehensive framework that emphasizes transparency, investor protection and market integrity.
The inclusion of prominent cryptocurrency exchange and custodian Coinbase Global Inc. as a designated market regulator is a strategic move to ensure strict oversight and regulatory compliance throughout the ETF’s operations.
The BlackRock Bitcoin ETF is designed to provide institutional and retail investors with a convenient and regulated vehicle to invest in the digital currency market.
By enabling investors to access bitcoin through traditional financial instruments, BlackRock aims to bridge the gap between traditional finance and the emerging world of cryptocurrencies. The proposed ETF would allow investors to allocate funds to bitcoin without directly owning or participating in the complex storage and security of the cryptocurrency.
Demand for cryptocurrency investment products has surged in recent years due to increased institutional adoption and growing awareness of the potential advantages of digital assets. However, U.S. regulators’ approval for a Bitcoin ETF remains elusive. The SEC has raised concerns about market manipulation, liquidity, custody and investor protection. As a result, some companies have been refining their proposals to address these issues and gain regulatory approval.
The resubmission of BlackRock’s Bitcoin ETF proposal reflects the ongoing efforts of industry leaders to respond to the changing regulatory environment and provide investors with a regulated and accessible way to participate in the digital asset market. While the SEC review process is still ongoing, market participants eagerly await decisions that could affect the future of bitcoin investment opportunities in the United States.
The BlackRock Bitcoin ETF proposal is another milestone in the ongoing dialogue between market participants and regulators, underscoring the importance of collaboration in building a responsible and sustainable framework for the evolving cryptocurrency ecosystem.
