Thursday, December 2

BlockFi is requesting a Bitcoin ETF

Cryptocurrency lending company BlockFi has filed with the United States Securities and Exchange Commission (SEC), a application to launch a physical-backed Bitcoin Exchange Traded Fund (ETF).

By the way, the initiative is the result of a partnership between BlockFi and the Neuberger Berman company.

About, Eric Balchunas, a Bloomberg ETF Senior Analyst, said: “BlockFi’s proposal is a way for the company to remain on the list of issuers vying for regulatory approval».

First of all, the BlockFi company was founded in 2017. And, it aims to build a bridge between cryptocurrencies and traditional financial and management products. Meanwhile, Neuberger Berman is a private investment manager managing more than $ 437 billion in assets.

BlockFi Submits Bitcoin ETF Request

In effect, the new request for a BTC spot ETF is in addition to more than 20 proposals awaiting a decision from the US securities regulator.

Either way, the S-1 form for the “BlockFi NB Bitcoin ETF” was filed with the SEC on Monday, November 8. According to official documents, BlockFi will be the custodian of the assets.

Incidentally, the ETF intends to offer stocks that reflect the cash value of Bitcoin held by the fund.

Also, the document indicates that the fund will not buy or sell Bitcoin directly. However, you can instruct the Custodian to sell Bitcoin to pay for certain expenses.

If the SEC approves the request, the shares issued by the ETF will be traded on the New York Stock Exchange. And they would provide direct exposure to the leading cryptocurrency by market capitalization.

Notably, about a month ago, BlockFi submitted a Bitcoin futures ETF application to the SEC. But the request has not yet been approved.

The SEC is close to its first approval

This week, the SEC could be close to its first approval of a physical Bitcoin ETF.

According James Seyffart From Bloomberg, the SEC’s decision on VanEck’s Spot Bitcoin ETF is scheduled for November 14. “It will be approved or rejected by the SEC.”

To recall, the ProShares Bitcoin Strategy ETF was approved last month. But, the approval came with a caveat: the fund’s price is tied to BTC futures rather than the spot price.

The SEC subsequently approved Valkyrie’s Bitcoin Strategy ETF, which is another futures-based product.

I close with this phrase from Lucanus: «Under the mask of recklessness there are great fears».

Leave a Reply

Your email address will not be published. Required fields are marked *