The US Securities and Exchange Commission (SEC) has officially acknowledged receiving exchange-traded fund (ETF) applications from traditional financial institutions, including BlackRock and Fidelity.
While the acknowledgment by itself does not indicate the regulator’s approval or rejection of pending applications, it is an important milestone in the application process.
BlackRock’s CEO discusses the company’s approach to cryptography
BlackRock CEO Larry Fink said the asset manager should democratize access to investments while comparing Bitcoin ETFs to the advent of gold ETFs. According to Fink, BlackRock’s foray into crypto is consistent with its goal of developing easy-to-use and cost-effective investment products.
Fink noted that investments in cryptocurrencies can diversify an investor’s portfolio, adding that the asset class has seen increased demand from its global clients.
“(cryptocurrency) has a distinct value compared to other asset classes, but more importantly, because it is so universal that it will outpace any single currency.”
Fink used to be a prominent critic of the cryptocurrency industry. However, his view of space seems to have evolved.
BlackRock led a wave of traditional institutional firms filing Bitcoin ETF applications with the SEC in June.
Will the SEC finally approve a bitcoin spot ETF?
Over the past years, the SEC has hesitated to approve a Bitcoin spot ETF. The regulator attributes its decision to its inability to prevent fraudulent and manipulative practices.
However, market watchers have pointed out that BlackRock’s exceptional track record with ETF applications makes it a frontrunner to overcome the historic hurdles presented by the SEC.
But the regulator quickly threw a wrench into the hopes as it deemed recent applications insufficient. The SEC said the apps failed to name the cryptocurrency exchange with which the companies signed a “Surveillance Sharing Agreement (SSA).”
The asset managers have since addressed the SEC’s concerns by reformulating their applications, naming Coinbase as an SSA partner.
Meanwhile, recent events in the space have fueled hopes that the regulator will finally approve a BTC ETF. Grayscale Cryptocurrency Asset Manager advertiser That investors are eager to gain exposure to BTC while protecting the ETF envelope.
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