quick take
- BlackRock has submitted an application for a Bitcoin spot ETF, which, if approved, would be the first ETF of its kind to receive regulatory blessings.
- Past research has revealed the complex dynamics between the Securities and Exchange Commission (SEC) and BlackRock to be relevant, especially in the context of approving or rejecting Exchange Traded Funds (ETFs).
- BlackRock, the world’s largest asset manager, has only once rejected an ETF proposed by the company. 2014.
- The proposed ETF would feature an opaque nature, similar to a blind trust, hiding its holdings from investors.Additionally, Shepard Smith Edwards & Kantha (SSEK) noted that the ETF offers no guarantee that its trading will match the net asset value.
- SSEK said the new ETF will only provide quarterly reporting, a departure from the SEC’s daily reporting requirements and a notable contradiction.
- The new ETF would also task Coinbase with the role of lead custodian of the fund’s Bitcoin, a decision that could be complicated by the SEC’s recent lawsuit against the exchange.
A post first appeared on CryptoSlate that the SEC rejected a one-time ETF application from BlackRock.
