BlackRock Speeds Up Its Spot Bitcoin ETF Filing Process

BlackRock's office with two US flags in all in a fast motion in a tunnel inscribed S-1

BlackRock re-filed its S-1 registration statement for a spot bitcoin ETF on Friday, after receiving last-minute comments from the SEC. The quick turnaround time suggests that the asset manager and the regulator are eager to launch the product soon.

All Parties Cooperating to Get Things Done

BlackRock, the world’s largest asset manager, has updated its filing for a spot bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), indicating that it is close to getting the green light from the regulator.

The asset manager re-filed its Form S-1, a registration statement for securities offerings, on Friday, after receiving some final comments from the SEC on Thursday, according to Bloomberg ETF analyst Eric Balchunas. Balchunas wrote on Twitter that the “unheard of 24hr turnaround time” between the filing, the comments, and the re-filing shows that “all parties [are] aiming to get this show on road pronto.”

ETF Will Be Listed On Nasdaq

The spot bitcoin ETF, named the iShares Bitcoin Trust, aims to reflect the performance of the price of bitcoin before fees and expenses, by investing directly in the cryptocurrency as the underlying asset. The ETF would be listed on the Nasdaq stock exchange and would use Coinbase Custody Trust Company as the bitcoin custodian.

BlackRock is one of several financial firms that have applied for spot bitcoin ETFs in the U.S., hoping to tap into the growing demand for the digital asset among investors. Spot bitcoin ETFs are considered more attractive and efficient than futures-based bitcoin ETFs, which track the price of bitcoin futures contracts rather than the actual cryptocurrency.

Approval, Rejection, or Delay Expected

The SEC has already approved several futures-based bitcoin ETFs, which began trading in October 2021 and have attracted billions of dollars in inflows. However, the regulator has been reluctant to approve spot bitcoin ETFs, citing concerns about market manipulation, custody, and investor protection.

The SEC is facing a deadline this week to rule on the first batch of spot bitcoin ETF applications, filed by Valkyrie Investments, VanEck, and WisdomTree. The regulator could approve, deny, or delay the decision, as it has done with previous applications.

An Easier Way to Invest in Digital Assets

The crypto industry and investors are hopeful that the SEC will finally give the nod to spot bitcoin ETFs, as they could provide a more accessible and regulated way to invest in the digital asset, without the hassle and risk of buying and storing bitcoins directly.

BlackRock’s speedy filing process suggests that the asset manager and the SEC are in close communication and are working to resolve any outstanding issues. If approved, BlackRock’s spot bitcoin ETF could be the first of its kind in the U.S. and a major milestone for the crypto market.

Author: Grace

Grace likes gardening. She holds some BTC and ETH.

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