BlackRock's 2025 Spot Bitcoin ETF Filing: Price and Market Impact Explained
BlackRock has submitted a groundbreaking application for a spot Bitcoin ETF in 2025, partnering with Coinbase for custody. This move could revolutionize U.S. Bitcoin investment opportunities once approved.
On Thursday, investment powerhouse BlackRock (BLK) made a significant move by filing an application with the Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF). This ETF would utilize Coinbase (COIN) as the custodian for asset safekeeping and market pricing, marking a potential first in the U.S. market if approved.
Highlights of BlackRock's Bitcoin ETF Application
- BlackRock officially filed for a Bitcoin spot ETF with the SEC in 2024.
- Coinbase is designated as the custodian responsible for asset storage and price data.
- Approval would establish the first U.S. spot Bitcoin ETF, differentiating from previously approved futures ETFs.
- The SEC has historically rejected several spot Bitcoin ETF proposals due to regulatory concerns.
The proposed iShares Bitcoin Trust aims to be listed on Nasdaq, with daily pricing anchored to the CF CME Bitcoin Reference Rate, which consolidates Bitcoin trading values from major spot exchanges. Each ETF share will be fully backed by actual Bitcoin holdings, ensuring no shares are issued without corresponding token delivery.
Despite this innovative approach, BlackRock's ETF still awaits SEC approval. The regulatory body has maintained a cautious stance on spot Bitcoin ETFs, emphasizing market security and investor protection.
The SEC is concurrently engaged in a legal dispute with Grayscale over its intention to convert the Grayscale Bitcoin Trust (GBTC) from a futures-based fund to a spot-backed ETF. A ruling on this case, expected later in 2024, may influence the fate of BlackRock's application.
During initial hearings, the SEC highlighted concerns about the fragmented and unregulated nature of the Bitcoin spot market, favoring regulated futures markets that include surveillance-sharing agreements to mitigate manipulation risks.
Approval of BlackRock's iShares Bitcoin Trust would also bolster Coinbase, which recently faced deposit withdrawals following SEC allegations of operating an "unlawful exchange."
Following the filing announcement, BlackRock's stock climbed 2.71%, while Coinbase shares saw a modest increase of 0.65%.
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