Investment firm BlackRock filed an application for a Bitcoin ETF yesterday.
After BlackRock’s ETF application, there was a short-term rise in Bitcoin. However, the company may have found a formula for the approval of the Bitcoin ETF.
BalckRock’s Bitcoin ETF Formula
BlackRock reportedly may have found a way to get SEC approval in its spot Bitcoin ETF application. The hedge fund’s proposal proposes a custody sharing agreement that could remove the risk of market manipulation associated with Bitcoin.
BlackRock’s iShares Bitcoin Trust’s filing with the SEC states that it may have a better chance compared to previous attempts by other fund managers. On page 36 of file 19b-4, BlackRock explains that it plans to sign a custody sharing agreement with an operator of a spot trading platform for Bitcoin to mitigate market manipulation. Thanks to this surveillance sharing agreement, information about market trading activity, clearing activity and client identity will be shared and the possibility of market manipulation will be reduced.
Stating that BlackRock’s focus on this custody sharing agreement is a factor that makes it different from other companies, Graeme Moore, Head of Tokenization of Polymesh Association, stated that the company is not only the world’s largest asset manager, but also the difference of this application.
