- BlackRock, the world’s largest asset manager, has an impressive 575-1 record of SEC approvals for its ETFs, as it now files for a spot Bitcoin ETF.
- The custodian for the planned Bitcoin trust is Coinbase, a cryptocurrency exchange currently targeted by SEC scrutiny.
In an unexpected move that has stirred the cryptocurrency community, BlackRock (NYSE: BLK), the world’s largest asset manager, has filed for a spot Bitcoin (BTC) exchange-traded fund (ETF). The significance of this action becomes more evident when considering BlackRock’s exceptional track record with ETF approvals by the United States Securities and Exchange Commission (SEC).
To be exact, BlackRock holds a stunning 575-1 record of SEC-approved ETFs, as pointed out by Bloomberg’s senior ETF analyst Eric Balchunas in a tweet dated June 16. This remarkable success rate underscores BlackRock’s seriousness and strategic execution, enhancing the gravity of its recent filing.
Interestingly, the solitary blemish on BlackRock’s otherwise impeccable record dates back to October 2014. The SEC denied the asset manager’s application for an actively managed ETF that did not necessitate daily disclosures of holdings.
This latest BlackRock initiative comes during a challenging period for cryptocurrencies in the US, as the SEC has launched several lawsuits against significant businesses within the crypto sector. Adding an intriguing layer to this unfolding narrative, the designated custodian for the planned Bitcoin trust is Coinbase, a cryptocurrency exchange currently under SEC scrutiny.
Should BlackRock’s spot Bitcoin ETF application succeed, the implications could be far-reaching. Balchunas previously noted the surprise of this filing, considering there were
“no signs at all [the] SEC [was] willing to approve.”
However, given BlackRock’s influential status, this move might signal a shift in the SEC’s stance on crypto ETFs.
This development could potentially also benefit ARK Invest, a global asset management firm currently in line with its third application for a spot Bitcoin ETF, done in collaboration with 21Shares. Despite two previous rejections by the SEC, a favorable decision on BlackRock’s filing could bode well for ARK.
Earlier in March, BlackRock’s chairman and CEO Larry Fink expressed interest in the crypto sphere, suggesting his company was exploring the
“digital assets ecosystem and tokenization of stocks and bonds.”
His comments underscored the appeal of assets like Bitcoin in emerging markets, reinforcing BlackRock’s latest Bitcoin ETF filing’s potential impact on the broader crypto landscape.