The Securities and Exchange Commission (SEC) of the United States has taken an important step toward adopting a Bitcoin exchange-traded fund (ETF) proposed by Blackrock, a well-known asset management firm. The SEC’s action has the potential to pave the path for greater adoption of crypto assets. It also instills a lot of confidence in new traders who are just getting started in the market and learning how to make money.
The application of Blackrock for a spot in Bitcoin ETF has been formally accepted, kicking off a review process that has piqued the interest of the crypto community. The SEC will accept public comments on the plan for 21 days, after which they will be posted on its official website.
Given Blackrock’s position as the world’s largest asset manager, acceptance of their application carries substantial weight. It demonstrates the SEC’s openness to investigate the future of cryptocurrency-based investments. It also creates a fresh entrance to crypto investing for those who are not currently interested. More people are going to be eager to put their money into new blockchain initiatives.
The application comes at a time when the SEC is investigating crypto platforms for potential securities law breaches. Coinbase has been appointed as the custodian for Blackrock’s Ishares Bitcoin Trust. This trust is mostly comprised of Bitcoin (BTC). A surveillance-sharing agreement with Coinbase is also included in the application.
NEWS: 📃🇺🇸The application of #Blackrock for a spot in Bitcoin ETF has been formally accepted by the SEC.
— Walletor (@walletorapp) July 19, 2023
The SEC has already rejected various proposals for bitcoin ETFs, citing market manipulation concerns. However, with Blackrock’s proposal there is rising hope in the crypto sector.
Furthermore, Europe anticipates that its first Bitcoin ETF will be publicly traded by the end of July. Despite regulatory obstacles in the EU, the product has been approved.
Conclusion
The SEC’s approval of Blackrock’s application is a positive sign for the future acceptance of bitcoin ETFs in the United States. It represents a growing acceptance of cryptocurrency and its financial possibilities. This might have far-reaching consequences for the entire cryptocurrency market in the years to come.
