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Bitcoin Spot ETF: BlackRock files purchase request with SEC

Fri 08 Mar 2024 ▪ 3 min read ▪ by Luc Jose A.
Getting informed ▪

BlackRock’s iShares Bitcoin Trust (IBTC) demonstrates remarkable performance in the spot Bitcoin ETF market. Amidst an explosion in demand for spot Bitcoin ETFs, BlackRock has engaged in a diversification strategy to meet this demand. Hence their request to purchase ETFs from the American financial regulator.

Une pièce du bitcoin,

A plan to purchase Bitcoin ETFs to support a BlackRock fund

According to recent information, financial giant BlackRock has filed an application with the SEC to purchase additional Spot Bitcoin ETFs. The application actually covers the company’s Global Allocation Fund.

According to the SEC filing, it may invest in exchange-traded products (ETPs) that track the performance of bitcoin (BTC), including those sponsored by companies affiliated with BlackRock.

However, it will only consider ETFs listed and traded on national securities exchanges. In other words, it will cover only regulated products allowed to be traded on national securities exchanges, thus offering a certain level of security.

It’s worth noting that the application for the Global Allocation Fund follows another recent request. It concerns the Strategic Income Opportunities Fund which BlackRock is trying to reinvigorate. This fund aims to provide competitive returns in comparison to global equities with lower risk.

The situation of BlackRock in the Bitcoin ETF market

The recent application to purchase Bitcoin ETFs by BlackRock is part of a context. The firm is simply winning its bet on the leading cryptocurrency via the iShares Bitcoin Trust (IBTC), its spot Bitcoin ETF.

It is currently the most high-performing ETF in the market. A performance that has sparked increased interest in Bitcoin ETFs. Last week was marked by unprecedented performances for all Bitcoin ETFs, with prices reaching new heights.

In these circumstances, BlackRock is clearly deploying a strategy aimed at diversifying its portfolio to further capitalize on the potential of cryptocurrencies, particularly that of bitcoin. This, by offering the best opportunities to its clients.

Note that for the time being, the SEC has not yet approved BlackRock’s request for additional ETFs for the Strategic Income Opportunities Fund. The decision is up to the commission which will review the merits of the request before reaching a conclusion. To be continued…

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.