BlackRock Resubmits Bitcoin ETF With Coinbase Surveillance
BlackRock, the world’s largest asset manager, has resubmitted its application for a spot bitcoin exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC) through Nasdaq. In a surprising move, the company revealed that Coinbase Global Inc., the popular cryptocurrency exchange, will provide market surveillance for the proposed ETF.
BlackRock resubmitted the spot bitcoin ETF application to the SEC through Nasdaq, adding new details that Coinbase Global Inc. will provide market surveillance for the ETF. Firms such as Fidelity Investments, Invesco, VanEck, 21Shares and WisdomTree also amended their filings.…
— Wu Blockchain (@WuBlockchain) July 4, 2023
Bitcoin ETF Application Resubmitted
The renewed application comes after BlackRock’s initial attempt was withdrawn earlier this year. The company appears determined to bring a bitcoin ETF to the market, recognizing the growing demand from investors for a regulated and accessible vehicle to gain exposure to cryptocurrencies.
The addition of Coinbase as the market surveillance provider is noteworthy, as it brings a well-established and trusted player into the mix. Coinbase’s involvement is expected to bolster the chances of approval for BlackRock’s ETF, as market surveillance is a critical aspect of the SEC’s evaluation process. Coinbase’s expertise in monitoring trading activities and ensuring compliance with regulatory standards will likely instill confidence among regulators and investors. BlackRock is not alone in its pursuit of a bitcoin ETF. Other prominent firms, including Fidelity Investments, Invesco, VanEck, 21Shares, and WisdomTree, have also amended their filings with the SEC. These companies are keen to capitalize on the growing interest in cryptocurrencies and offer investors a regulated and secure investment vehicle.
Renewed Optimism for Crypto ETF Approval
The resubmission of these applications signals a renewed optimism in the prospects of cryptocurrency ETFs gaining regulatory approval in the United States. While the SEC has been cautious in its approach to approving such products, the increasing participation of major financial institutions and the involvement of trusted market surveillance providers may pave the way for a breakthrough. If approved, a bitcoin ETF would provide retail and institutional investors with a convenient way to invest in bitcoin without the complexities associated with direct ownership or trading on cryptocurrency exchanges. It would also offer enhanced transparency and regulatory oversight, addressing some of the concerns surrounding the cryptocurrency market.
The SEC now has the task of carefully evaluating the amended applications and assessing the measures put in place for investor protection and market integrity. As the regulatory landscape continues to evolve, the decision regarding the approval of bitcoin ETFs could have far-reaching implications for the mainstream adoption of cryptocurrencies in the United States and beyond.
