Will BlackRock iShares’ ETF Application to Change Crypto For Good?

BlackRock’s iShares Bitcoin Trust has knocked on the U.S. Securities and Exchange Commission’s (SEC) door with a new proposal. They’ve got their eyes set on a spot Bitcoin ETF. This time, they’ve come prepared with a surveillance-sharing agreement between Nasdaq and a Bitcoin spot trading platform. The aim? To tackle market manipulation by being transparent about trading and clearing activities, along with customer identification.

The market didn’t just sit by. It hailed BlackRock’s application as a pivotal move. Bitcoin didn’t stay still either. It saw an 18% climb since the filing. BlackRock, the giant with $9 trillion in assets under management, is now knocking down walls in the minds of institutional investors. They’ve got a good record with the SEC, and experts are betting on a thumbs-up for the iShares Bitcoin Trust.

The Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund and the closest cousin to a Bitcoin ETF, also felt the impact. It got a significant boost following BlackRock’s application. However, the SEC has been playing hardball, having previously rejected GBTC’s ETF application. The SEC’s track record suggests a dislike for spot-traded Bitcoin ETFs, but BlackRock’s application might just be the game-changer.

BlackRock is not leaving anything to chance. They argue that the Bitcoin Futures market is a regulated market of significant size, and that the watchful eyes of CME on futures market conditions should be enough for approval. They’re also suggesting that regulation of the spot Bitcoin market shouldn’t be a deal-breaker.

A successful BlackRock ETF could create ripples across the crypto market. However, time is yet to tell what will happen.