The United States Securities and Exchange Commission (SEC) has started reviewing BlackRock’s application for a Bitcoin spot exchange-traded fund (ETF), one day after acknowledging Bitwise’s similar submission.
This preliminary step marks the SEC’s readiness to evaluate the feasibility and market impact of a Bitcoin spot ETF, despite being the first phase of a complex regulatory process.
Exchange-traded funds or ETFs are investment products that often track specific indexes, and in the crypto context, they replicate the value of one or more digital assets and comprise a range of cryptocurrencies.
The SEC stated on July 14 that it’s reviewing multiple fund applications, including those from Wise Origin Bitcoin Trust, WisdomTree, VanEck, and Invesco Galaxy.
The financial industry considers BlackRock’s move to apply for a Bitcoin spot ETF noteworthy, given its market standing.
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The application includes an agreement for surveillance-sharing with Coinbase, a leading cryptocurrency exchange.
The ongoing competition to debut a Bitcoin ETF in the U.S. is viewed positively in the crypto sector.
With several applications in progress, the likelihood of approval increases, as the SEC can evaluate diverse strategies and considerations.
Despite the developments, the SEC has not yet approved a Bitcoin spot ETF within the U.S. Meanwhile, Canada has already greenlit this type of financial product.
Purpose Bitcoin, 3iQ CoinShares, and CI Galaxy Bitcoin are three substantial funds that have received regulatory approval in Canada.
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