SEC Begins Consideration of BlackRock’s Spot Bitcoin ETF Application

This is just the first step in a long regulatory process, CoinTelegraph recalls, but the fact remains that the SEC is willing to explore the very idea of ​​a spot bitcoin ETF and assess the potential impact of such a digital instrument on the financial market. .

ETFs are investment funds that generally correspond to certain stock indices and, in the cryptocurrency space, are directly tied to the value of one or more digital tokens.

While BlackRock’s ETF proposal is not the only one being considered by the regulator, which is also looking at applications from Wise Origin Bitcoin Trust, WisdomTree, VanEck and Invesco Galaxy, the presence of such a major player in the spot race suggests that the first Bitcoin ETF.

BlackRock’s filing also differs from others in that it includes a “joint supervision” agreement with cryptocurrency exchange Coinbase.

Competition between companies claiming to launch the first bitcoin ETF in the US is seen by market experts as a positive development for the cryptocurrency industry. Multiple filings increase the chances of success, and the variety of proposals allows the SEC to evaluate different strategies and issues.

So far, such a tool has not been introduced in the United States. Nor does it exist in Europe. But in Canada, this financial product is already available. Local regulators approved proposals from the Purpose Bitcoin, 3iQ CoinShares and CI Galaxy Bitcoin funds.