BlackRock’s iShares has submitted documents to the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin ETF. The proposed ETF, named the iShares Bitcoin Trust, aims to primarily hold Bitcoin assets through a custodian, Coinbase, a well-known crypto exchange.
This move follows reports of BlackRock’s intention to file for a Bitcoin ETF, with the company’s substantial influence in the financial industry potentially influencing the SEC’s decision. BlackRock and its CEO Larry Fink possess much political power as the world’s largest asset manager, with over $10 trillion in assets under management.
The ETF’s benchmark is the CME CF Bitcoin Reference Rate, which sources price data from crypto exchanges adhering to high market integrity and transparency standards. This ensures that products tied to the benchmark can accurately track the spot price of Bitcoin, providing investor protection.
Amidst a regulatory crackdown in the U.S. crypto industry, which recently involved the SEC suing Coinbase and Binance, BlackRock’s ETF application brings optimism. The news has had a slightly positive impact on market sentiment, as the price of Bitcoin experienced a modest increase, reaching nearly $25,600.
Sui Chung, CEO of CF Benchmarks, a subsidiary of Kraken crypto exchange, noted that BlackRock’s involvement indicates ongoing interest in Bitcoin among major financial institutions, reinforcing its status as an attractive asset.