Here’s Why SEC Will Approve BlackRock’s Filing — It’s Not Because It’s BlackRock

1. BlackRock has filed for a Bitcoin trust, which sent BTC back to over $25,000.
2. BlackRock’s application is for a trust and not necessarily a spot ETF.
3. Previously, Grayscale’s application to convert its Bitcoin trust into an ETF was denied by SEC.

BlackRock, the world’s largest asset manager, has filed for a Bitcoin trust that will allow multitudes of clients safer exposure to the chief cryptocurrency. This has single-handedly brought back Bitcoin (BTC) to the critical $25.3K support level after the bulls failed to defend it from a catastrophic breach.

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CoinDesk was the first to report on the filing, although mainstream media such as CNBC and Reuters reported the same thing as well.

This has lifted the spirits of crypto fans, especially since there has been a lot of assault against crypto exchanges in the US. In fact, Coinbase will be the listed custodian for the BlackRock application, despite the exchange engaging the SEC in a lawsuit.

However, some in the crypto space have pointed out a gross mistake in reporting. 

As many have explained, BlackRock’s filing is for a Bitcoin trust, not an exchange-traded fund (ETF). This means that the filing will mostly get approved not because it is BlackRock that is filing it, but because the SEC doesn’t necessarily have to approve or reject a trust application — especially since Bitcoin is not considered a security. 

Nevertheless, the SEC will still have to regulate the trust.

To cite an existing example, Grayscale, a leading crypto custodian that has a Bitcoin trust, has been denied of its filing to convert the former into a spot Bitcoin ETF. This led Grayscale to sue the SEC for rejecting its application.

Now, the BlackRock application is being met with mixed emotions from the crypto space. Many who are not based in the US are happy with the filing, but Americans are alleging that the SEC and Wall Street giants are elbowing out crypto pioneers so that they can monopolize the market.

Read Also :

• Blackrock $Blk Has Lost $1.7T of Its Clients’ Assets
• BlackRock launches EU blockchain ETF
• Georgia Approves Bill Regulating Bitcoin And Crypto
• Robinhood Adds $GBTC and $ETHE to Its App
• PayPal Joins the TRUST Network at Coinbase