Bitcoin ETF Race: BlackRock Debuts New Filing

BlackRock, the world's largest asset manager, has filed an updated prospectus for its Bitcoin exchange-traded fund (ETF). 

This update comes as a likely response to comments from the U.S. Securities and Exchange Commission (SEC), mirroring actions taken by other financial giants like Ark and Fidelity.

New additions

Earlier in June, BlackRock's iShares unit announced its intention to file paperwork for the formation of a spot Bitcoin ETF named the "iShares Bitcoin Trust." This fund, as stated in the initial filing, would primarily consist of Bitcoin held by crypto exchange Coinbase as the custodian on the trust's behalf.

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Given BlackRock's stature in the industry, boasting over $10 trillion in assets under management, their ETF application carries significant weight.

The recent updated filing by BlackRock notably acknowledges the intense competition in the race for Bitcoin ETF approval and offers detailed insights into the product's pricing and reporting mechanisms.

Furthermore, the company pointed out the unregulated nature of the broader Bitcoin market, emphasizing potential operational challenges with digital asset exchanges that could adversely affect the value of their proposed ETF shares.

ETF hype

The anticipation surrounding Bitcoin ETF approvals, particularly from major players like BlackRock, has been palpable. 

This was evident when Bitcoin experienced a sharp 8% drop after a debunked report claimed the SEC's approval of BlackRock's iShares Bitcoin ETF. BlackRock swiftly responded, clarifying that its ETF application remains under review and that no approval has been granted. 

Despite this setback caused by misinformation, analysts remain optimistic. Industry watchers estimate a 90% chance of a spot Bitcoin ETF being approved by Jan. 10, 2024. Recent engagements between other companies and the SEC further fuel this optimism, indicating a possible forthcoming positive shift in the SEC's stance on spot Bitcoin ETFs.