US SEC accepts BlackRock spot bitcoin ETF application

The application for the iShares Bitcoin Trust was filed around a month back, generating a new hope across the crypto market, and additional filings for spot Bitcoin ETFs from several other leading players

BlackRock’s application to offer a spot Bitcoin exchange-traded fund (ETF) has been added to the official docket of the US Securities and Exchange Commission as part of its proposed rule change process. The move, recorded late Thursday, advances the most keenly-watched Bitcoin-related proposal to the Securities and Exchange Commission to date.

The application for the iShares Bitcoin Trust was filed around a month back, generating a new hope across the crypto market, and additional filings for spot Bitcoin exchange-traded funds from several other leading players, including from companies such as Invesco, Wisdom Tree, Bitwise, and Fidelity—which saw its earlier application refused in 2022 along with those from other applicants.

When the Securities and Exchange Commission hinted in June that BlackRock’s application was lacking, the firm filed an amended application, adding a “surveillance sharing” clause that would involve the Coinbase crypto exchange monitoring and reporting possible illegal activity.

Following this, Valkyrie updated its application with the same provision, as did Fidelity and ARK Invest.

A spot Bitcoin exchange-traded fund would track Bitcoin’s value without requiring the asset to be held directly. It would also be tradable on a conventional stock exchange.

While a Bitcoin exchange-traded fund based on Bitcoin futures launched to great fanfare earlier in 2022, a spot exchange-traded fund—which is tied to the present price of the cryptocurrency—has been described as a “holy grail” for the sector. The Securities and Exchange Commission’s continued resistance to approving one during the last several years has been termed a disaster.

With BlackRock’s application now on the Securities and Exchange Commission’s official calendar, it will be published in the Federal Register and start a 21-day public comment period.