BlackRock and the hope for a Bitcoin spot ETF: How the SEC decision could affect the crypto market

BlackRock and the hope for a Bitcoin spot ETF: How the SEC decision could affect the crypto market

How www.finanzen.net reports, the crypto community is eagerly awaiting the approval of a Bitcoin spot ETF. BlackRock has made significant progress by addressing the SEC's concerns. The approval of a Bitcoin spot ETF could significantly boost the Bitcoin price and increase demand for Bitcoins.

The possible approval of a Bitcoin spot ETF in the USA has already triggered an impressive rally in the original cryptocurrency Bitcoin. Experts estimate that the introduction of a spot ETF could lead to an increase in demand for Bitcoin and drive the Bitcoin price up to 74.1 percent.

BlackRock, the world's largest asset manager, filed a Bitcoin spot ETF registration application with the SEC in July 2023. By implementing a cash variant for custody of the iShares Bitcoin Trust, BlackRock is attempting to address the Securities and Exchange Commission's concerns. The decision on the approval of the Bitcoin ETF by the SEC is expected between January 5th and 10th, 2024.

The changes BlackRock has made indicate that the company is addressing a concern raised by stock market regulators and is moving forward with the approval process for the Bitcoin spot ETF. Implementing the cash option instead of the preferred “in-kind” redemption is a step to ensure investor protection in accordance with SEC requirements.

Previous reports indicate that BlackRock has already received seed capital for the Bitcoin ETF from an investor, indicating that the company is moving forward with the implementation of the ETF.

The Bitcoin ETF approval decision may have a significant impact on the market by further driving Bitcoin acceptance and trading. The announcement of the SEC decision will influence market behavior and investor interest, potentially triggering a renewed rise in Bitcoin prices.