The United States Securities and Exchange Commission (SEC) has postponed the consideration of global asset manager BlackRock’s application for a Bitcoin exchange-traded fund (ETF). BlackRock, a company known for managing trillions of dollars in assets, had proposed the iShares Bitcoin Trust, which aimed to provide investors with exposure to Bitcoin markets without directly holding the cryptocurrency. This move comes after BlackRock submitted its application to the U.S. SEC in June for a Bitcoin-backed ETF, planning to utilize Coinbase Custody as the custodian of the fund’s Bitcoin holdings, while the Bank of New York Mellon would handle its fiat accounts.
BlackRock outlined the benefits of its ETF in its filing, emphasizing the elimination of obstacles that are inherent in direct Bitcoin investment, such as complexities and operational burdens. However, the SEC has decided to delay the approval process for this application. It is important to note that this delay does not necessarily mean denial.
This news follows a recent SEC decision to reverse its initial rejection of Grayscale Investments’ over-the-counter Grayscale Bitcoin Trust (GBTC) listing on August 29. Grayscale Investments, a cryptocurrency asset manager, successfully persuaded the SEC to overturn its decision. The SEC overturning its initial ruling suggests a potential willingness to consider Bitcoin-related investment products.
In addition to BlackRock’s ETF, several other Bitcoin ETF proposals have also experienced delays from the SEC. On August 31, the commission extended the review period for applications from WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck, and Fidelity. These delays demonstrate that the SEC is taking its time to thoroughly assess and evaluate the various Bitcoin ETF applications with their unique characteristics and potential impacts on the market.
The SEC’s cautious approach to approving Bitcoin ETFs reflects the regulatory agency’s responsibility to protect investors and ensure market stability. Due to Bitcoin’s volatile nature and the potential risks associated with it, the SEC is taking the necessary time to carefully consider the potential implications of these investment products.
It is important to note that the SEC’s decision to postpone BlackRock’s Bitcoin ETF application does not indicate a rejection. The delay provides the regulatory agency with more time to review the proposal and assess whether it meets the necessary regulatory standards and safeguards.
As this story continues to unfold, more information will be added to provide a comprehensive understanding of the SEC’s evaluation process and any updates regarding BlackRock’s Bitcoin ETF application.
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