BlackRock Nears Submission of Bitcoin ETF Application, According to Sources

• BlackRock poised to enter the Bitcoin ETF market, relying on Coinbase Custody and spot market data.
• Collaboration between BlackRock and Coinbase paves the way for institutional access to cryptocurrencies.
• Uncertainty looms as BlackRock’s Bitcoin ETF plans remain undisclosed amidst regulatory challenges.

BlackRock, the world’s largest asset manager, is reportedly nearing the submission of an application for a Bitcoin ETF (exchange traded fund), as per an individual familiar with the situation. The source further stated that BlackRock intends to utilize Coinbase (COIN) Custody for the ETF, while relying on the crypto exchange’s spot market data for pricing. Coinbase declined to provide any comments on the matter.

BlackRock commenced Coinbase collaboration in 2022

In mid-2022, BlackRock commenced its collaboration with Coinbase to enable direct access to cryptocurrencies for institutional investors. However, it remains unclear whether the proposed ETF will be based on spot or futures contracts. BlackRock has not yet responded to requests for comment.

It is worth noting that the Securities and Exchange Commission (SEC), responsible for overseeing ETFs in the United States, has so far rejected all applications for spot bitcoin ETFs, while approving several bitcoin futures ETFs for trading.

As the situation surrounding the BlackRock Bitcoin ETF remains uncertain, with no official statement or confirmation from the company, it is crucial to consider the regulatory landscape and the SEC’s previous stance on spot bitcoin ETF applications.

The digital asset industry in the United States currently faces an uncertain regulatory environment. Recently, the US Securities and Exchange Commission (SEC) took enforcement action against two of the country’s largest cryptocurrency exchanges. Despite these developments, a major investment firm remains undeterred and continues its involvement in the industry.