BlackRock's Bitcoin ETF Will Be Today's Seventh Application To Be Postponed By The SEC

The biggest asset management in the world has been holding off on launching a mutual fund on exchanges for its iShares Bitcoin Fund in the US.

Source: bitcoinarchive.co

Global asset manager BlackRock's application for a Bitcoin exchange-traded fund has been put on hold by the Securities and Exchange Commission (SEC) of the United States. Following an application with the SEC, BlackRock, a company having in excess of $8.5 trillion in funds under supervisors, has delayed making a judgment about its iShares Bitcoin Trust. BlackRock submitted a BTC-backed ETF application in June, listing exchange as the intended custodian of the fund's Bitcoin assets with the Bank of New York Carnegie as the custodian of its fiat accounts.

The benefits of the shares in removing obstacles embodied in the complicated rules and operational costs involved in making a direct investment in Bitcoin were described in BlackRock's filing. Following a petition to have an SEC ruling overturned that had first disallowed the listing of its without a prescription Grayscale Bitcoin Trust (GBTC) on August 29, bitcoin asset management Grayscale Investments requested that the ETF be delayed.

Many in the cryptocurrency community believed that the recognition of a spot Bitcoin ETF endorsed by BlackRock, the largest asset manager in the world, would be a good indication for acceptance. The additional time gives the SEC 45 additional days after issuance in the Federal Register to accept, reject, or postpone the deadline once more. The SEC postponed a number of Bitcoin ETFs on August 31. In order to give the programs in WisdomTree, Invesco Galaxy, Valkyrie, Bitwise, VanEck, and Fidelity more time, the commission extended the evaluation period.

Uncertainty exists regarding the following stages for both Grayscale's application and the SEC's appeal of the ruling. In an effort to make the spot investment vehicle's registration more similar to that of a Bitcoin futures-linked ETF, the asset management could resubmit to the SEC. According to experts, the SEC also has the possibility of requesting an en banc hearing, in which the case would be heard by every single judge on the D.C. circuit rather than just the three who decided the Grayscale appeal. 

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.