BlackRock Steps to Explore Bitcoin Generate Huge Inflows

Previously, the US Securities and Exchange Commission (SEC) gave a negative statement regarding the application for a Bitcoin Spot ETF license by a giant asset manager company. The SEC said the registration applications were unclear and more information was needed before they would be considered for approval.

The commission told the Nasdaq exchange and Cboe Global Markets, which submitted applications on behalf of BlackRock and Fidelity Investments, that their submissions were insufficient, according to people familiar with the matter.

A spokesperson for Cboe confirmed it will be re-filed on behalf of Fidelity. Nasdaq is working to answer questions and provide updates for the next iteration of filings.

There have been around 30 trials for Bitcoin products, according to a tally from Bloomberg Intelligence. However, the registration application has faced challenges from regulators, which have in the past cited market concerns and a lack of investor protection.

Fidelity originally filed for the Wise Origin Bitcoin Trust in 2021, which was rejected by the SEC in January 2022. The SEC has approved a futures Bitcoin ETF.

Digital asset enthusiasts are excited by the prospect of cryptocurrencies potentially becoming more accessible to everyday investors, and a wave of submissions has driven a surge in the crypto market.

Bitcoin jumped back above USD 30,000 or the equivalent of IDR 451.2 million (assuming an exchange rate of IDR 15,040 per US dollar) in June and is trading at its highest level in about a year after information circulated about the application for a Bitcoin ETF license from asset management giants.

Both the Nasdaq and Cboe are working to provide the new information in the hope that it will meet the SEC’s approval threshold, according to the person who asked not to be publicly named.

They plan to revise and resubmit the application based on feedback and talks with regulators, the people said.