BlackRock's proposal for a Bitcoin exchange-traded fund (ETF) has been officially added to the Securities and Exchange Commission's docket. This marks a significant step forward for the highly anticipated Bitcoin-related application.
The filing for the iShares Bitcoin Trust was submitted nearly a month ago, sparking renewed optimism in the crypto market. Following BlackRock's application, other major players, including Invesco, Wisdom Tree, Bitwise, and Fidelity, also filed for spot Bitcoin ETFs. Fidelity had its previous application rejected last year, along with other contenders.
When the SEC indicated that BlackRock's initial application was inadequate, the company submitted a revised version that included a "surveillance sharing" provision. This clause involves Coinbase, a prominent crypto exchange, monitoring and reporting any potential illegal activity.
Subsequently, Valkyrie, Fidelity, and ARK Invest updated their applications to include the same provision.
A spot Bitcoin ETF would track the value of Bitcoin without requiring direct ownership of the asset. It would also be tradable on traditional stock exchanges.
While a Bitcoin ETF based on Bitcoin futures gained significant attention earlier this year, a spot ETF tied to the current cryptocurrency price has been regarded as the industry's "holy grail." The SEC's persistent reluctance to approve such an ETF in recent years has been widely criticized as a "complete and utter disaster."
With BlackRock's application now officially on the SEC's calendar, it will be published in the Federal Register, initiating a 21-day public comment period.
Additionally, on Friday, four other applications related to the Cboe BZX Exchange were docketed. Cboe was the first entity to apply for a Bitcoin ETF in March 2021. The applications include the Wise Origin Bitcoin Trust, WisdomTree Bitcoin Trust, VanEck Bitcoin Trust, and Invesco Galaxy Bitcoin ETF, all of which will undergo a three-week comment period.
