BlackRock, the world’s largest asset manager with over $10 trillion in assets under management, has filed an application for a bitcoin exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC). The proposed iShares Bitcoin Trust would be custodied by Coinbase and would be benchmarked against indices provided by CF Benchmarks, using price data from six exchanges. The objective of the fund is to “reflect generally the performance of the price of bitcoin”.
The SEC has previously rejected all applications for spot bitcoin ETFs, which offer investors exposure to the underlying asset rather than a futures contract. However, the SEC has approved several bitcoin futures ETFs. If approved, the bitcoin ETF would provide investors with a regulated and accessible investment vehicle to participate in the bitcoin market.
Meanwhile, Ethereum’s price is facing resistance at levels of $1,700 and $1,720 against the US dollar and could face further declines if it fails to break past these levels. Currently trading below $1,700 and the 100-hourly Simple Moving Average, Ethereum may face another decline with support levels at $1,640 and $1,620. However, if Ethereum manages to break past the resistance levels, it could potentially lead to further gains above $1,820.
Overall, BlackRock’s filing for a bitcoin ETF custodied by Coinbase marks a significant development in the adoption and growth of cryptocurrencies in traditional finance. As more institutions explore options for investing in cryptocurrency, it is likely that we will see more innovation and growth in the blockchain space.