BlackRock, the worlds largest asset manager, is reportedly on the brink of submitting an application for a Bitcoin ETF (exchange-traded fund), as disclosed by a reliable source familiar with the matter.
In their pursuit of a Bitcoin ETF, BlackRock has chosen Coinbase Custody as their trusted custodial solution. Moreover, the asset manager will rely on Coinbase's spot market data to ensure accurate and reliable pricing for the ETF. Coinbase and BlackRock have so far refrained from providing any official comments on the matter.
While the specifics of the upcoming ETF remain undisclosed, it is yet to be determined whether it will be based on spot or futures contracts. BlackRock, however, refrained from immediate comment, leaving investors eagerly awaiting further details.
It is worth noting that the Securities and Exchange Commission (SEC), the regulatory authority responsible for overseeing ETFs in the United States, has thus far rejected every application for a spot bitcoin ETF. Nevertheless, the commission has granted approval for several bitcoin futures ETFs, which have been successfully introduced for trading.
BlackRock's imminent filing for a Bitcoin ETF signals a turning point in the industry, as a prominent player in the traditional financial space acknowledges the potential of Bitcoin. If approved, the Bitcoin ETF would open doors to a new wave of adoption and provide investors with an unprecedented opportunity to participate in the Bitcoin market through a regulated and accessible investment vehicle.