BlackRock, the world's largest asset manager, has reportedly allocated $2 billion for its spot #BTC ETF launch within days of its announcement.
The #etf is part of a broader effort to gain exposure to the cryptocurrency market without having to buy the currency directly. BlackRock is among 14 asset managers hoping to win the U.S. Securities and Exchange Commission's (SEC) approval for spot Bitcoin ETFs, which would track the market price of the underlying #crypto asset.
Key points about the launch include:
BlackRock's spot Bitcoin ETF is expected to be a game-changer for the digital assets industry if approved by the SEC.
The ETF would enable authorized participants, such as highly regulated U.S. banks like JPMorgan or Goldman Sachs, to play a key role in the ETF ecosystem.
BlackRock recently made it so authorized participants would be allowed to use cash to purchase Bitcoin, which can then be exchanged into Bitcoin by an intermediary.
The SEC has a deadline of January 10, 2024, to rule on an ETF proposal by Ark Invest and 21Shares, and it could also choose to deny such products as it has done over the years.
As the launch date for BlackRock's spot Bitcoin ETF approaches, #CoinClub is closely watching the SEC's decision and the potential impact on the #cryptocurrency market and traditional finance sector.
