BlackRock has filed an application for a bitcoin exchange-traded fund (ETF) to the US Securities and Exchange Commission (SEC), which would allow investors to get exposure to the cryptocurrency.
If the SEC approves the application, it would be the first publicly traded spot bitcoin ETF in the US.
BlackRock currently operates a spot bitcoin private trust for institutional clients which it launched in August last year. The trust tracks the performance of bitcoin, offering direct exposure to the price of the digital currency, according to the asset manager.
Coinbase Custody will be used by BlackRock’s iShares Bitcoin Trust as its custodian, according to a filing with the SEC – building upon an already existing relationship between the two firms.
In August last year, BlackRock expanded its crypto offering through a partnership with Coinbase. The two firms created new access points for institutional crypto adoption through the connection of their Coinbase Prime and Aladdin platforms.
If the SEC was to approve BlackRock’s filing, the launch of a spot bitcoin ETF by a large asset manager could help rebuild confidence in digital assets, which has been deflated by news including the collapse of FTX last year.
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It is still unclear whether the SEC will approve BlackRock’s filing. However, given that earlier this month, the regulator sued Coinbase alleging securities violations – as well as previous rejections for similar filings from other asset managers such as Grayscale – the SEC might exercise reluctance once again.