As U.S. regulators crack down on two of the world's largest cryptocurrency exchanges, Binance and Coinbase, BlackRock, the world's largest asset management firm, is aiming to introduce its first publicly traded Spot Bitcoin Exchange-Traded Fund (ETF).
According to a report by the Financial Times on June 16, BlackRock recently submitted an application to launch a spot Bitcoin ETF, potentially the first of its kind to be publicly traded in the U.S.
Should the U.S. Securities and Exchange Commission (SEC) approve the application, the fund will be traded on the NASDAQ Stock Market. This move symbolizes a further increase in BlackRock's investments in the field of cryptocurrency.
Last year, BlackRock launched a private spot Bitcoin trust fund. The proposed Bitcoin ETF will further enhance BlackRock's position in the cryptocurrency field and bring new vitality to the crypto market.
However, the SEC has previously rejected similar proposals from other asset management firms multiple times due to unregulated exchanges and potential manipulation risks. Hence, it remains uncertain whether BlackRock's application will get approved.
Recently, the SEC has brought lawsuits against Binance and Coinbase, two titans in the global cryptocurrency market that occupy half of the market share. The lawsuits against these two exchanges are considered to be the most stringent regulatory actions ever taken in the crypto market. The SEC has demanded an urgent freeze on the assets of the Binance U.S. platform worldwide, causing a significant impact on the cryptocurrency market.
Against the backdrop of Bitcoin prices falling more than 60% from its 2021 high, BlackRock's proposed Bitcoin ETF could inject new vitality into the cryptocurrency market. BlackRock's move signifies that the world's largest financial institution remains interested in Bitcoin.
