Representatives of fund manager BlackRock and the Nasdaq stock exchange have discussed a Bitcoin Exchange Traded Fund (ETF) with the US Securities and Exchange Commission (SEC).
iShares Bitcoin Trust
In a recent memo from Edward Cho of the SEC’s Office of Market Supervision, Division of Trading and Markets, BlackRock explained how it would use a model for its Bitcoin fund.
The fund is called iShares Bitcoin Trust and aims to take a non-monetary or cash reward approach. The SEC did not respond to either model. James Seyffart, asset manager and crypto lawyer, highlighted the news Tweet.
It’s time
Several analysts believe that the SEC is close to making a decision on a Bitcoin ETF in sight. Although other countries have approved a spot Bitcoin ETF, including Canada, Germany, Jersey, Brazil, Liechtenstein, Guernsey, Australia and the Cayman Islands, the US market is still characterized by the absence of these assets.
The approval of a Bitcoin spot ETF would provide a huge boost to the adoption of cryptocurrencies in traditional markets.
It is still too early to say whether the committee will approve a Bitcoin spot ETF. In recent years, the SEC has denied and deferred applications from several leading institutional finance companies, including Valkyrie, VanEck, Bitwise and Fidelity. BlackRock was the first company to list a cash ETF on the Nasdaq.
What is a Bitcoin Spot ETF?
A Bitcoin Spot ETF is a financial product that allows investors to participate in the price of Bitcoin without actually purchasing or owning the cryptocurrency. Unlike traditional ETFs that track the performance of stocks or other assets, a Bitcoin spot ETF specifically tracks the price of Bitcoin in the spot market.
Investors can buy and sell ETF shares on stock exchanges just like any other security. This provides an easy and regulated way to invest in Bitcoin. The ETF typically holds Bitcoin as part of the underlying asset, allowing investors to indirectly own a portion of the cryptocurrency without the need for a digital wallet or direct ownership of Bitcoin.
Source: BtcDirect
Source link
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
