BlackRock files application for spot bitcoin ETF

Context: The SEC rejected the VanEck spot bitcoin ETF application in March. It also denied an attempt by Ark Investment Management and 21Shares.

• Notably, Grayscale has been in a long-time battle with the SEC over the issue, with the commission arguing that bitcoin's unregulated nature leaves investors in the space open to potential fraud.
• The commission has taken a different stance on futures, approving Valkyrie's bitcoin futures fund last year, along with Teucrium's bitcoin futures fund.

Details: Coinbase Custody Trust Company, LLC is the custodian for the Trust’s bitcoin holdings; and Bank of New York Mellon is the custodian for the Trust’s cash holdings.

• The application seeks to list the ETF on the Nasdaq.

The big picture: The application for the iShares Bitcoin Trust will be an uphill battle, as regulators have become increasingly wary of crypto following the collapse of FTX. The crypto community however will see this as a positive, with an industry giant appearing to wade into their corner.

Go deeper:

• SEC rejects more bitcoin ETF proposals
• SEC commissioners not in agreement over Bitcoin ETF