BlackRock’s New Strategy: Simplifying the Path to Bitcoin ETF Approval

BlackRock, the world’s largest asset manager, has made an application with the US Securities and Exchange Commission (SEC) to list and trade its iShares Bitcoin (BTC) Trust on the Nasdaq stock exchange.

The SEC has expressed concerns about market manipulation related to Bitcoin prices and has previously rejected applications for BTC ETFs. To address this concern, BlackRock has partnered with Nasdaq to enter into a surveillance-sharing agreement with a Bitcoin spot trading platform operator.

Potential Approval For Blackrock’s Spot Bitcoin ETF

The iShares Bitcoin Trust, filed by BlackRock, differs from other proposed BTC ETFs in several ways. It will be issued by a Delaware statutory trust and will primarily hold Bitcoin, with Coinbase Custody Trust Company as the custodian for its BTC holdings.

The investment objective of the iShares Bitcoin Trust is to reflect the performance of Bitcoin’s price, providing investors with an alternative method of achieving exposure to BTC through the public securities market.

BlackRock’s ETF Approval Rate Is Almost Perfect

The chances of the SEC approving BlackRock’s iShares Bitcoin Trust are uncertain, given historical caution from the SEC regarding Bitcoin ETFs. However, BlackRock’s partnership with Nasdaq to address market manipulation concerns may improve the approval chances.

BlackRock has an impressive track record of getting ETFs approved by the SEC, with a success rate of 575-1. This demonstrates their ability to navigate the regulatory landscape and create investment products that meet the SEC’s standards.

BlackRock’s reputation as a well-established and respected player in the financial industry may also give the SEC greater confidence in their ability to manage the risks associated with a Bitcoin ETF.

BlackRock’s application for the iShares Bitcoin Trust is a significant step towards regulatory approval for a Bitcoin ETF in the US. If approved, it would be the first Bitcoin ETF listed on a US exchange.

Ultimately, the decision to approve or reject BlackRock’s application will be up to the SEC. However, given the growing interest in cryptocurrency and the demand for regulated investment products that provide exposure to Bitcoin, the SEC may be open to approving BlackRock’s application.

Bitcoin
BTC’s uptrend on the 1-day chart. Source: BTCUSDT on TradingView.com

Featured image from Unsplash, chart from TradingView.com