BlackRock Submits Application for Bitcoin ETF, Collaborating with Coinbase and Nasdaq as Key Partners

**BlackRock to Launch Bitcoin ETF: A Potential Game Changer for Crypto Markets**

Asset management giant BlackRock has filed an application to launch an exchange-traded fund (ETF) for Bitcoin. This move is significant as it allows retail investors to buy Bitcoin as shares of an ETF from an ordinary brokerage account and makes it easier for institutional investors, including pension funds, to hold the asset.

Partnerships with Coinbase and Nasdaq

The ETF application states that Coinbase will serve as the custodian of the trust’s underlying Bitcoin, while Nasdaq will oversee the pricing data that informs the spot market price. This partnership with Coinbase and Nasdaq is crucial as the Securities and Exchange Commission has previously expressed concerns about market manipulation, which has prevented the approval of a Bitcoin ETF.

Positive Market Response

News of BlackRock’s application for a Bitcoin ETF has already had a positive impact on the price of Bitcoin, which jumped by around 3%. This demonstrates the potential market demand and excitement surrounding the launch of the ETF.

Addressing Accessibility Challenges

While it has become easier to buy Bitcoin in recent years, there are still obstacles to obtaining it in the form of traditional shares. This has been a challenge for large institutions that have restrictions on the types of assets they can hold. The Grayscale Bitcoin Trust, which is currently the most popular option for acquiring Bitcoin in share form, charges a management fee of around 2% per year, which many investors consider high.

BlackRock’s Pedigree and Expected Success

BlackRock is not the first company to attempt to offer a Bitcoin ETF with lower fees. Grayscale and other funds have also sought permission but have been denied by the SEC. However, BlackRock believes it will be able to succeed where others have failed due to its pedigree and the oversight of Nasdaq in pricing data. This is expected to alleviate concerns about potential price manipulation by the ETF manager.

Comparison to Existing Crypto ETFs

The SEC has previously granted permission for a crypto ETF, but only for futures markets, which are more complicated and expensive for investors compared to spot market ETFs. Grayscale has filed a lawsuit against the agency over this decision, and analysts predict that the company has a good chance of prevailing based on a recent federal court hearing.

Conclusion

BlackRock’s application for a Bitcoin ETF has the potential to revolutionize the crypto markets by providing retail investors and institutional investors with an accessible and regulated way to invest in Bitcoin. The partnership with Coinbase and Nasdaq, along with BlackRock’s reputation, increases the likelihood of approval for the ETF. As the regulatory landscape continues to evolve, the launch of a Bitcoin ETF would be a significant milestone in the acceptance and adoption of cryptocurrencies.

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