Given its prominence in the financial sector, BlackRock’s entry into the battle to introduce a spot Bitcoin ETF is very significant.
A major milestone has been reached towards the SEC’s possible approval of a spot Bitcoin exchange-traded fund (ETF).
The SEC has approved BlackRock’s proposal, after the previous day’s acceptance of Bitwise’s application, another big financial services provider.
When BlackRock’s petition is approved, the formal evaluation of their ETF may commence. While this is only the first step in what is likely to be a long regulatory process, it does show that the SEC is open to the idea of a spot Bitcoin ETF and is prepared to assess the possible effect it may have on the market.
Exchange-Traded Funds (ETFs) are financial vehicles that are regularly traded on exchanges and designed to follow a certain index.
The Securities and Exchange Commission (SEC) said on July 14 that it is considering applications from several different funds, including the Wise Origin Bitcoin Trust, WisdomTree, VanEck, and Invesco Galaxy.
Given its prominence in the financial sector, BlackRock’s entry into the battle to introduce a spot Bitcoin ETF is very significant.
They have included a “surveillance-sharing” deal with major bitcoin exchange Coinbase in its registration for a spot Bitcoin ETF.
More applications enhance the SEC’s pool of potential winners, and the variety of ideas presented gives them more to feed on.
The SEC in the United States has not yet given its OK to a spot Bitcoin ETF, although such a product is currently on the market in Canada.
BlackRock’s application being approved and other ETF ideas being reviewed show that the mainstream financial industry is beginning to see the potential of cryptocurrencies.
The market is waiting expectantly for the SEC to decide on the first U.S.-based Bitcoin spot ETF while the SEC continues its examination.
Also Read: U.S. Financial Institutions Are Widely Anticipated To Adopt XRP After The Announcement
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