The world’s largest asset manager is preparing to apply for a Bitcoin ETF (exchange-traded fund).
BlackRock May Apply for Bitcoin ETF
According to foreign sources, BlackRock, the world’s largest asset manager, is reportedly close to applying for a Bitcoin ETF (exchange-traded fund).
BlackRock will use Coinbase (COIN) Custody for the ETF and will use the cryptocurrency exchange’s spot market data for pricing. BlackRock has been working with Coinbase since mid-last year to provide institutional investors with direct access to cryptocurrency.
It is unclear whether the ETF will be a spot or futures contract. BlackRock has not yet made a statement on this matter.
So far, the U.S. Securities and Exchange Commission (SEC), which regulates ETFs in the U.S., has rejected any spot Bitcoin ETF applications but has approved several bitcoin futures ETFs.
Bitcoin Price Attempts to Recover
After consecutive blows, the Bitcoin price managed to rise above $25,000 again with the news of BlackRock’s ETF application.
It remains to be seen how the SEC, which has filed lawsuits against Coinbase and Binance exchanges, will respond to the Bitcoin ETF. The regulator’s moves have shaken the cryptocurrency market. Despite a slight recovery, the crypto market experienced a sharper decline below $25,000 on Wednesday following the Federal Reserve’s interest rate decision.
