©Reuters
NEW YORK – BlackRock Inc, the world’s largest asset manager, is in the final stages of preparing its exchange-traded fund (ETF), as the U.S. Securities and Exchange Commission (SEC) is becoming more and more vigilant. The financial giant is set to launch a cryptocurrency ETF as the SEC continues to express concerns about third-party involvement in the funds’ transactions.
The ETF proposal, initially filed in June, named Coinbase as the custodian for handling bitcoin transactions. However, Coinbase’s recent legal difficulties with the SEC have cast doubt on the ETF’s progress. The SEC’s apprehension centers on potential risks related to third-party involvement, which could affect the timeline for approval of BlackRock’s ETF.
BlackRock has not yet indicated how it plans to address these regulatory concerns or whether it will make any changes to its ETF proposal. As the market awaits further developments, BlackRock’s foray into Bitcoin ETFs marks an important step toward mainstream adoption of cryptocurrencies, despite the regulatory hurdles ahead.
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