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BlackRock's Bitcoin ETF Re-Bid Delayed: Expert Weighs Reasons Why

Mon, 07/03/2023 - 14:29
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Gamza Khanzadaev
BlackRock delaying re-bid for Bitcoin (BTC) ETF leaves experts speculating, Bloomberg's Eric Balchunas lists three possible reasons
BlackRock's Bitcoin ETF Re-Bid Delayed: Expert Weighs Reasons Why
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In a recent development, BlackRock has delayed its re-bid for a spot Bitcoin ETF. The delay has sparked speculation among industry experts, prompting a closer examination of the potential reasons behind this unexpected move.

As Bitcoin ETF Hype Picks Up Steam, First-Ever Filing Turns 10

Senior ETF analyst for Bloomberg Eric Balchunas put forward three theories for BlackRock's hesitation. First, he suggested that the firm might have already refiled, but a delay in updating the Nasdaq website could be responsible for the lack of public acknowledgment.

The second theory, which Balchunas found most intriguing, revolves around the inclusion of more surveillance-sharing agreement (SSA) details. While other firms merely replaced "Crypto Exchange" with "Coinbase" in their refilings, the Wall Street Journal's report hinted at the SEC staff's desire for "clarity and comprehensiveness." This implies that the regulator seeks additional information, a possible reason for BlackRock's delay as they aim to provide the necessary transparency.

Finally, the third theory revolves around the extraordinary performance of ARK Invest, which filed for a Bitcoin ETF in April and has since surged ahead. Despite this, Balchunas deemed it unlikely that BlackRock lost interest due to ARK Invest's success, as they likely anticipated the competition.

Did SEC Just Kill Bitcoin ETF Hype?

Regardless of the reason behind the delay, the SEC's recent communication with exchanges about unclear and insufficiently exhaustive bids for spot Bitcoin ETFs has led to a shakeout in the crypto market. Several other companies, such as Fidelity, Invesco, VanEck and WisdomTree, have refiled their proposals, listing Coinbase as their exchange SSA partner.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.