(CTN News) – According to the Financial Times, BlackRock, an asset manager with $9 trillion in assets under management, is close to filing an application for a Bitcoin ETF (exchange-traded fund).
Additionally, Coindesk reported based on the knowledge of sources familiar with this matter that the application was progressing.
According to a report by Bloomberg, the investment firm based in New York City plans to use Coinbase Custody in order to invest in the potential ETF.
According to the report, the cryptocurrency exchanges will also use spot market data from the cryptocurrency exchanges in order to determine the prices.
To date, Coinbase has refused to comment on the development of this story, so we will have to wait for further developments.
Is BlackRock launching a Bitcoin exchange traded fund (ETF)?
There is a bit of an unsettling atmosphere surrounding the regulation of the digital asset industry in the United States. In fact, two of the largest cryptocurrency exchanges in the country have just been acted upon by the US Securities and Exchange Commission (SEC) as part of an enforcement action.
Even so, it has not deterred one major investment firm from continuing to participate in this industry despite the recent developments.
It has been reported that New York-based investment firm BlackRock is close to filing a draft application for the creation of a Bitcoin ETF.
Additionally, the firm will work closely with Coinbase to incorporate its spot market data into the Bitcoin ETF.
Furthermore, last year, Coinbase teamed up with BlackRock to work together on a number of projects and initiatives. In particular, this can be achieved by offering institutional investors the opportunity to invest in digital assets.
It is not yet known if the BlackRock Bitcoin ETF will be a spot or a futures contract. Furthermore, there is a lack of clarity regarding its investability.
In addition, BlackRock has yet to comment on the development of the story or whether they plan to submit the application to the federal government in the near future.
There is a regulatory body in the United States called the Securities and Exchange Commission that regulates ETFs. The company has also rejected all applications for a spot Bitcoin ETF to date, according to a report from Coindesk.
There are however, ETFs that track Bitcoin futures that have been approved for trading purposes. As a result, the approval of BlackRock may depend on the distinction between those two categories.