Asset management giant BlackRock has revised its spot Bitcoin exchange-traded fund (ETF) model, making it easier for banks to access. BlackRock stated that the revised model offers “superior resistance” to market manipulation, addressing one of the major concerns the U.S. Securities and Exchange Commission (SEC) has had with spot Bitcoin ETFs. The SEC has previously rejected several spot Bitcoin ETF proposals due to concerns over market manipulation. By addressing this concern, BlackRock hopes to increase the chances of regulatory approval for its Bitcoin ETF. However, the asset management firm did not provide any specific details about how the revised model achieves this enhanced resistance to manipulation.
The SEC has been hesitant to approve cryptocurrency-related ETFs due to concerns over price manipulation in the underlying markets. By addressing this concern, BlackRock may be positioning itself to be at the forefront of the ETF race, potentially overtaking competitors such as VanEck and WisdomTree who have also filed for Bitcoin ETFs.
A Bitcoin ETF would be a significant development for the cryptocurrency industry as it would provide institutional investors with an easier and regulated way to gain exposure to Bitcoin. Currently, institutional investors can access Bitcoin through futures products or by investing in Grayscale’s Bitcoin Trust, which is a bit different than an ETF.
While BlackRock’s revised ETF model could improve the chances of regulatory approval, it is important to note that the SEC has historically been cautious about approving Bitcoin ETFs. There have been multiple rejections and delays in the past, and it is uncertain whether the revised model will be enough to sway the regulator’s decision.
In conclusion, BlackRock’s revision of its spot Bitcoin ETF model to enable easier access for banks is a significant move that could increase the chances of regulatory approval. By addressing concerns over market manipulation, BlackRock is positioning itself as a potential leader in the race to launch a Bitcoin ETF. However, it remains to be seen whether the revised model will be enough to convince the SEC, who has historically been cautious about approving such products. The battle for a Bitcoin ETF continues, and the outcome could have a major impact on the cryptocurrency industry.
