Quick Take
- BlackRock has filed its application for a Bitcoin spot ETF which, if approved, would be the first of its kind to receive the regulatory blessing.
- A historical examination reveals intricate dynamics between the Securities and Exchange Commission (SEC) and BlackRock, particularly in the context of approving or rejecting Exchange-Traded Funds (ETFs), is appropriate.
- BlackRock is the world’s largest asset manager and has only once had an ETF it proposed rejected by the SEC in 2014.
- The proposed ETF was characterized by its nontransparent nature, which would have hidden its holdings from investors, akin to a blind trust. Moreover, Shepherd Smith Edwards and Kanta (SSEK) noted that this ETF did not provide assurance that its trading would be aligned with the net asset value
- According to SSEK, the new ETF would only provide its reports quarterly, a deviation from the SEC’s stipulation of daily reporting and a discrepancy of note.
- The new ETF would also task Coinbase as chief custodian of the fund’s Bitcoin—a decision possibly complicated by the SEC’s recent lawsuit against that exchange.
Analyst
James Van Straten
James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.
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