In a bid to boost investor interest in cryptocurrency funds, BlackRock (NYSE:BLK), the world’s largest asset manager, has refined its proposal for an exchange-traded fund (ETF) based on spot bitcoin. The revised proposal, which was submitted to the Securities and Exchange Commission (SEC) and Nasdaq officials on Monday, seeks to enable direct trading of bitcoin (BTC) rather than relying on futures as cash-based ETFs do.
This update to the ETF model aims to address the SEC‘s continued preference for cash-based bitcoin spot ETFs. Despite BlackRock’s efforts to offer a product that would allow investors to trade actual bitcoin, the SEC has historically been reluctant to approve ETFs tied directly to the volatile cryptocurrency market.
The initial proposal for the physical Bitcoin Spot ETF was submitted to the SEC on November 20. BlackRock’s latest refined version comes after receiving feedback from the SEC staff, demonstrating the asset manager’s commitment to aligning with regulatory standards while meeting the growing demand for cryptocurrency investment vehicles.
As the market awaits the SEC’s response to this new model, BlackRock’s push for innovation in the ETF space reflects the continued interest in integrating digital assets into traditional investment portfolios. The outcome of this proposal could signal a significant shift in how investors can engage with bitcoin through regulated financial products.
