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NEWSLETTER SIGNUP My account Log Out Jun 16, 4:57 AM EDT Business Technology World National Politics Media & Culture Opinion Sports Social Capital Crypto NEWSLETTER My account Log Out US Edition Business Technology World National Politics Media & Culture Opinion Sports Social Capital Crypto Listings & More Spotlight Glossary Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States NEWSLETTER Follow Us Editions Australia Edition India Edition International Edition Singapore Edition United Kingdom United States Business BlackRock Submits Spot Bitcoin ETF Application With The SEC, To Use Coinbase As Custodian By Nica Osorio @nicaIBTimes 06/16/23 AT 4:57 AM EDT Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Share on Flipboard KEY POINTS BlackRock's Bitcoin ETF application sent BTC's price into a positive trend Bitcoin 2.24% gain and was trading in the green zone at $25,530.27 as of 4:13 a.m. ET on Friday BlackRock partnered with Coinbase, which will be the custodian of the funds' Bitcoin holdings The world's largest asset manager, BlackRock, along with its partner Coinbase, has filed an application with the U.S. Securities and Exchange Commission (SEC) to register a spot Bitcoin exchange-traded fund (ETF). The investment company, which had $9.5 trillion in assets under management in Q1 2023, is working with the American publicly traded company Coinbase, and will use its Custody Trust Company as the custodian of the Bitcoin holdings of the funds. BlackRock will also depend on Coinbase's spot market data in terms of pricing with the American investment banking service BNY Mellon to handle the custody of the cash. Dubbed the BlackRock iShares Bitcoin Trust, it would be traded as Commodity-based Trust Shares, with the Bitcoin price updating "at least" every 15 seconds on regular market trading using the CF Benchmarks Index. "The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in Bitcoin," the application read. The Blackrock ETF filing is live, and it’s * SPOT * “The assets of the Trust consist primarily of bitcoin held by a custodian on behalf of the Trust.” — Swan (@Swan) June 15, 2023 Industry watchers have varied reactions to this application, and, though the filing momentarily triggered the spike of Bitcoin's price, some are adamant the SEC will not approve the application based on several factors. This includes the application's involvement with Coinbase, which was recently accused by the financial watchdog of securities law violation and the SEC's reluctance to approve futures-based Bitcoin ETFs. The Wall Street major regulator, in the past, had rejected similar applications by Grayscale, Wisdom Tree and VanEck. But BlackRock may be a different story for the SEC, considering it is the world's largest asset manager and has over $10 trillion in assets under management. Also, its CEO Larry Fink, unlike others, has political ties that can match the power of the financial regulator or at least its chairman Gary Gensler. BlackRock's move came days after the SEC exercised its regulatory power and filed charges against Binance and Coinbase, which resulted in the crypto market trading in the red zone as the bad news dampened sentiments. Bitcoin has reacted to the latest application for spot Bitcoin ETF by BlackRock. The world's largest crypto asset by market capitalization saw a 2.24% gain and was trading in the green zone at $25,530.27 over the past 24 hours with a 24-hour volume still down by 9.81% at $14,443,375,477.7 as of 4:13 a.m. ET on Friday, based on the latest data from CoinMarketCap. Reuters REGISTER FOR FREE to continue reading ✔️ Unlock the full content of International Business Times UK for free offer available for a limited time only ✔️ Easily manage your Newsletters subscriptions and save your favourite articles ✔️ No payment method required Already have an account? Log in © Copyright IBTimes 2023. All rights reserved. Join the Discussion MOST READ IN Business 1 China Central Bank Cuts Key Interest Rate To Boost Economy 2 Two Killed In Shooting At Japan Army Training Range 3 Asian Markets Rise As Fed Holds Rates, China Cuts 4 Crunch Time At UPS With Strike Looming 5 Pause, Hike, Cut: Central Banks Diverge Over Regional Challenges NEWS Business Technology World National Politics Media & Culture Opinion Sports Crypto Featured Social Capital Glossary SMB Forum Spotlight ABOUT About Us Contact us Advertise with us Terms & Conditions Privacy Policy Cookie Policy Editions United States Australia Brazil Colombia France Germany Indonesia India International Italy Japan Editions Nigeria Philippines Singapore South Africa South Korea Spain Mexico Taiwan United Arab Emirates United Kingdom FOLLOW US Facebook Twitter LinkedIn Newsletter © Copyright 2023 IBTimes LLC. All Rights Reserved.
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