The United States Securities and Exchange Commission (SEC) has officially acknowledged receiving applications for Bitcoin exchange-traded funds (ETFs) from traditional financial institutions, including BlackRock and Fidelity.
While the recognition itself does not indicate approval or denial of the pending applications by the regulator, it represents an important milestone in the application process.
BlackRock CEO talks about the company's approach to cryptocurrencies
Larry Fink, CEO of BlackRock, saying the asset manager must democratize investment access while comparing Bitcoin ETFs to the advent of gold ETFs. According to Fink, BlackRock's foray into cryptocurrencies aligns with its goal of developing easy-to-use and profitable investment products.
Fink noted that cryptocurrency investments could diversify an investor's portfolio, adding that the asset class has seen increased demand from its global clients.
โ[Cryptocurrency] it has a differentiating value compared to other asset classes, but what is more important, because it is so international that it will transcend any currency".
Fink used to be a prominent critic of the cryptocurrency industry. However, his views of his space seem to have evolved.
black rock headed a wave of traditional institutional firms that Bitcoin ETF requests sent to the SEC in June.
Will the SEC Finally Approve a Spot Bitcoin ETF?
In recent years, the SEC has been hesitant to approve a spot Bitcoin ETF. The regulator attributes its decision to its inability to prevent fraudulent and manipulative practices.
However, market observers have He suggested that BlackRock's exceptional track record with ETF applications makes it a favorite to overcome historical hurdles presented by the SEC.
But the regulator soon threw a wrench into hopes, as considered inappropriate recent apps. The SEC said the filings did not mention the cryptocurrency exchange with which the companies had signed a โsurveillance exchange agreement (SSA).โ
Since then, asset managers have addressed the SEC's concern by refiling their applications, us Coinbase as your SSA partner.
Meanwhile, recent events in the space have further bolstered hopes that the regulator might finally approve a BTC ETF. Grayscale Cryptocurrency Asset Manager fixed that investors are eager to get exposure to BTC with the protections of the ETF wrapper.
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