On March 10th, 2021, two of the world’s largest asset managers, BlackRock and Valkyrie Digital Assets, filed for approval with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin exchange-traded fund (ETF). This would be the first ETF to track the price of Bitcoin, the world’s most popular cryptocurrency.
The filing comes at a time when the SEC has been increasingly scrutinizing the cryptocurrency industry. The SEC has previously rejected numerous applications for a Bitcoin ETF, citing concerns about market manipulation and investor protection. However, the filing by BlackRock and Valkyrie is seen as a sign that the SEC may be more open to approving a Bitcoin ETF in the near future.
The filing is also significant because it marks the first time that a major financial institution such as BlackRock has sought approval for a Bitcoin ETF. BlackRock is one of the largest asset management companies in the world with over $8 trillion in assets under management. The filing is seen as a sign that institutional investors are increasingly interested in investing in cryptocurrencies.
If approved, the ETF would be listed on the New York Stock Exchange and would track the price of Bitcoin. The ETF would provide investors with an easy way to invest in Bitcoin without having to purchase the actual cryptocurrency. It would also provide investors with exposure to the cryptocurrency market without having to worry about security or storage issues.
The filing by BlackRock and Valkyrie is seen as an important step towards the mainstream adoption of cryptocurrencies. If approved, it could open the door for other major financial institutions to enter the cryptocurrency market and provide investors with more options for investing in digital assets. It could also lead to more innovation in the cryptocurrency space as more companies look to develop new products and services.
Only time will tell if the SEC will approve the application from BlackRock and Valkyrie. However, if approved, it could be a major milestone for the cryptocurrency industry and could pave the way for more institutional investors to enter the market.
