The acknowledgment from the SEC signals the start of the formal review procedure for BlackRock’s ETF proposal.
The United States Securities and Exchange Commission (SEC) has approved BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF), which is a significant move for the cryptocurrency sector. This action follows the SEC’s recent recognition of Bitwise’s comparable application, which marks the official start of the review process for BlackRock’s ETF proposal.
BlackRock’s participation into the contest for a Bitcoin ETF space carries tremendous weight and has the potential to have huge effects because it is one of the biggest investment management companies in the world.
SEC Reviewing Multiple Bitcoin ETF Applications
BlackRock’s application was approved by the SEC as part of a larger evaluation of numerous funds. Other firms up for certification as a Bitcoin ETF include WisdomTree, VanEck, Invesco Galaxy, and Wise Origin Bitcoin Trust. This heightened interest in spot Bitcoin ETFs is indicative of the financial industry’s growing acceptance and acknowledgement of cryptocurrencies.
Competition and Diverse Proposals Increase Chances of Success
It is thought that the competition between firms aiming to introduce a Bitcoin ETF in the US will be beneficial for the cryptocurrency industry. The possibility of acceptance increases when several submissions are being examined. Different ideas provide the SEC a chance to assess different tactics and handle any issues, opening the door for the eventual launch of a spot Bitcoin ETF in the nation.
While the Canadian equivalent of the SEC has already granted the go-ahead to three big funds: Purpose Bitcoin, 3iQ CoinShares, and CI Galaxy Bitcoin, the SEC has yet to authorize a spot Bitcoin ETF in the United States. These approvals show the possibilities for regulatory development in the US and raise expectations for the results of the continuing SEC review procedure.