The world of cryptocurrency is ever-evolving, and one of the latest developments is the potential for a Bitcoin exchange-traded fund (ETF). BlackRock’s iShares unit has recently requested approval from the U.S. Securities and Exchange Commission (SEC) to launch an ETF that tracks the price of Bitcoin. The proposed ETF, called the iShares Bitcoin Trust ETF, would be the first of its kind in the United States.

The iShares Bitcoin Trust ETF would be a passive investment vehicle, meaning that it would track the price of Bitcoin without attempting to actively manage it. The ETF would be based on the price of Bitcoin as determined by the CME CF Bitcoin Reference Rate, which is an index of prices from several major cryptocurrency exchanges. The ETF would also be backed by physical Bitcoin, meaning that investors would have direct exposure to the cryptocurrency.

The SEC has yet to approve any Bitcoin ETFs, but the iShares Bitcoin Trust ETF could be the first to receive approval. If approved, the ETF would provide investors with an easy and convenient way to invest in Bitcoin without having to buy and store the cryptocurrency themselves. It could also open up the cryptocurrency market to a wider range of investors, including those who may not have the technical knowledge or resources to buy and manage Bitcoin directly.

At this time, it is unclear if or when the SEC will approve the iShares Bitcoin Trust ETF. However, if approved, it could be a major step forward for the cryptocurrency industry and could open up a new world of investment opportunities for investors.