- BlackRock files for a Bitcoin ETF, signaling its entrance into crypto.
- Expert Adam Cochran expresses optimism, citing BlackRock’s unique ETF structure.
- The proposed ETF would provide investors with regulated exposure to Bitcoin.
In a surprising turn of events, BlackRock, the world’s largest asset manager, has officially filed for a Bitcoin exchange-traded fund (ETF), signaling its entrance into the crypto space.
The development has caught the attention of renowned crypto expert and partner at CEHV, Adam Cochran, who expressed his cautious but optimistic stance on Twitter. Cochran highlighted the unique structure of BlackRock’s proposed ETF, distinguishing it from previous attempts by other industry giants.
In the tweet, Cochran stated that he believes the BlackRock ETF filing has favorable odds for approval.
Cochran noted that the 30-act redeemable trust with redemptions and the proposed rule change filing sets BlackRock’s approach apart from others. He emphasized that the asset management behemoth has taken a serious stance and is ready to participate actively in the crypto market.
BlackRock submitted its filing to the U.S. Securities and Exchange Commission (SEC) on Thursday. The proposed iShares Bitcoin Trust by BlackRock aims to provide investors with a regulated vehicle for exposure to Bitcoin.
BlackRock’s interest in the crypto market comes when the industry faces increased scrutiny from regulatory bodies. Recently, the SEC filed high-profile lawsuits against prominent exchanges Coinbase and Binance, creating ripples throughout the digital assets industry.
If approved, a spot bitcoin ETF would enable investors to track the market price of Bitcoin without directly owning it. Proponents argue that an ETF offers convenient and regulated access to Bitcoin exposure.
Last year, the SEC rejected Grayscale Investment LLC’s application to convert its flagship Grayscale Bitcoin Trust (GBTC) into an ETF. Grayscale subsequently filed a lawsuit against the SEC, claiming arbitrary actions in rejecting spot bitcoin ETF applications while approving bitcoin futures ETFs.
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