• BlackRock’s iShares unit has filed paperwork with the SEC to form a spot Bitcoin ETF.
• The proposed ETF will be called the iShares Bitcoin Trust and its custodian will be Coinbase.
• The SEC has previously rejected other attempts by fund management companies to open a spot bitcoin ETF.
BlackRock’s iShares Files Paperwork for Spot Bitcoin ETF
BlackRock’s iShares unit has filed paperwork with the U.S. Securities and Exchange Commission (SEC) for the formation of a spot bitcoin exchange-traded fund (ETF). This proposed ETF, called the iShares Bitcoin Trust, will have Coinbase as its custodian and will be benchmarked against the CME CF Bitcoin Reference Rate.
SEC Rejects Previous Attempts at Spot Bitcoin ETF
The SEC has previously rejected numerous attempts by other fund companies to launch a spot bitcoin ETF, including Grayscale, VanEck, and WisdomTree. Despite this fact, BlackRock may not find it as easy for the SEC to turn away due to its impressive size and political clout.
Binance Undergoes Money Laundering Investigation
Separately from BlackRock’s filing news, Binance’s French unit is undergoing investigation by local authorities for potential money laundering activities. Furthermore, Binance is also leaving the Netherlands after failing to acquire a license from the Dutch regulator.
First Mover Hosts Weigh In
Market experts weighed in on these recent developments surrounding both BlackRock’s filing news and Binance’s money laundering investigation news. These experts voiced their opinions on how these events could affect markets in terms of investments opportunities or risks that investors should keep an eye out for.
In conclusion, BlackRock’s move towards launching a spot bitcoin ETF could potentially pave the way for other companies looking to get involved in crypto related products or services in order to capitalize on this growing market trend; however there are still risks associated with investing in cryptocurrencies which investors should be aware of before diving into this space. Additionally, concerns about money laundering activities within cryptocurrency exchanges remain high as evidenced by recent investigations into Binance’s French unit which could present further regulatory hurdles for exchanges and other service providers operating within this space going forward.