Bitcoin Trust Filing Could Signal SEC's Acceptance of Bitcoin
The world's largest asset manager has filed for a Bitcoin trust, raising hopes that the SEC may someday soon approve an actual spot Bitcoin ETF in the United States.
The iShares Bitcoin Trust, as it will be known, would track the price of Bitcoin and allow investors to buy and sell shares in the fund just like ETFs do.
The application is significant because it comes at a time when the SEC has been hesitant to approve spot Bitcoin ETFs and similar products. The SEC has rejected several applications for actual spot Bitcoin ETFs in recent years, citing concerns about market manipulation and investor protection.
Many in the space have erroneously called the recently filed trust a spot ETF, but financial pundits admit that technically the trust is not a true exchange-traded fund. However, the application is for a “grantor” trust, which is a type of trust that allows investors to redeem their shares for the underlying assets. So, for all intents and purposes, the trust is designed to operate in an extremely similar fashion to how real ETFs do.
It’s too early to say whether the SEC will approve the trust application. However, many observers believe that the filing is a positive sign for the future of Bitcoin ETFs in the United States. If the SEC does approve the iShares Bitcoin Trust, it would be a major milestone for the Bitcoin industry and could help to bring more institutional users into the market.
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