The United States Securities and Exchange Commission has acceptedBlackRock’s application for an Exchange-Traded Fund that tracks Bitcoin. The update is noteworthy because it comes just a day after SEC acknowledged an application from Bitwise, another investment firm pursuing this product.
BREAKING – The SEC officially acknowledges BlackRock’s spot #Bitcoin ETF application pic.twitter.com/BDM9mpi5xv
– Bitcoin Magazine July 14 2023
The SEC has acknowledged that it is reviewing BlackRock’s ETF. This is the first step of a long regulatory process but it’s a major milestone for the Bitcoin Community. The SEC’s acknowledgement shows that it is willing to explore the idea of a Bitcoin ETF, and evaluate its potential market impact.
BlackRock Sets the Pace
BlackRock Inc.’s entry in the spot bitcoin ETF race is important due to the company’s stature within the financial world.
BlackRock has a huge influence and credibility with its $9 trillion of assets managed. The decision of the company to pursue a Bitcoin ETF demonstrates the increasing acceptance and recognition that cryptocurrencies are gaining within the traditional financial industry.
In response to BlackRock’s filing of a Bitcoin ETF a number of companies, including Fidelity Investments Invesco and WisdomTree, have also rushed to offer the same product. This action shows that the companies are aware of the increasing demand for Bitcoin investment vehicles that are regulated and their desire to meet the needs of clients.
This competition to launch the first Bitcoin ETF is encouraging for the crypto sector. Multiple filings increase the likelihood of success as the SEC can evaluate different strategies and address concerns.
BlackRock sees a future with Bitcoin investment
BlackRock, world’s biggest asset manager, expressed its belief that Bitcoin will be a successful investment in the future. BlackRock, which has historically been cautious when it comes to cryptocurrencies but recently changed its mind.
Larry Fink has said that Bitcoin can be used as a form of store of value. Fink said in an earlier article that the spot Bitcoin ETF registration was a way to democratize cryptocurrency and make it more affordable. He says Bitcoin is the next gold and a global asset.
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