According to Blockworks, BlackRock, along with about a dozen other companies, is awaiting approval from the US Securities and Exchange Commission (SEC) to launch a Bitcoin ETF. Other companies with similar proposals include Ark Invest, 21Shares, Fidelity, Invesco, and Bitwise. Grayscale Investments has also stated that its Bitcoin Trust (GBTC) is ready to operate as an ETF upon receiving necessary regulatory approvals.
The SEC has consistently blocked Bitcoin ETFs from coming to market for about a decade. These funds, if approved, would hold BTC directly and give investors exposure to the asset within an investment vehicle accessible via traditional brokerage accounts. ETFs, which hold roughly $7 trillion in assets, are a tool used by retail investors and financial advisers alike. Bloomberg Intelligence analysts estimate a 90% chance of spot Bitcoin ETF approval by January 10, the SEC's deadline to rule on a Bitcoin ETF proposal by Ark Invest and 21Shares.
BlackRock's filing for a spot Bitcoin ETF in June has spurred a new wave of Bitcoin ETF proposals across the financial sector. The company manages more than $9 trillion in assets and has only ever had one product proposal denied by the SEC in nearly 600 attempts, according to Bloomberg Intelligence data. Additionally, Grayscale won a court case against the SEC in August, limiting the criteria on which it would be able to deny the conversion of the Grayscale Bitcoin Trust (GBTC) to an ETF. The SEC had a chance to challenge the legal decision as late as last month but opted not to. Furthermore, fund issuers have amended their Bitcoin ETF proposals, signaling an ongoing dialogue with the SEC.
