© Reuters.
To boost investor interest in cryptocurrency funds, BlackRock (NYSE:), the world’s largest asset manager, has refined its Bitcoin Spot exchange-traded fund (ETF) proposition. The revised proposal, which was presented to the Securities and Exchange Commission (SEC) and Nasdaq officials on Monday, aims to allow direct trading of bitcoin (BTC) rather than relying on futures contracts as do cash-based ETFs.
This ETF model update aims to address the SEC’s continued preference for liquidity-focused Bitcoin Spot ETFs. Despite BlackRock’s efforts to provide a product that would allow investors to trade real-world bitcoin, the SEC has still been cautious in approving ETFs tied directly to the volatile cryptocurrency market.
The initial in-kind Bitcoin Spot ETF proposal was presented to the SEC on November 20. BlackRock’s latest refined release comes after receiving feedback from SEC staff, indicating the asset manager’s commitment to aligning with regulatory standards while meeting growing demand for investment instruments in cryptocurrencies.
As the market awaits the SEC’s response to this new model, BlackRock’s drive for innovation in the ETF space reflects current interest in integrating digital assets into traditional investment portfolios. The outcome of this proposal could mark a significant shift in how investors can engage in Bitcoin through regulated financial products.
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