BlackRock Optimistic Bitcoin Spot ETF Will Be Approved By US Regulators

A number of asset manager companies are looking forward to the approval of the Bitcoin Spot ETF. (Photo; Doc. Cryptoinversion)

JAKARTA - BlackRock, the world's largest asset manager, hopes to get permission from the US Securities and Exchange Commission (SEC) to launch its Exchange-Trad Funds (ETF) Bitcoin spot called Ishares Bitcoin Trust on January 10, 2024. The company has prepared more than $2 billion (IDR 31.1 trillion) for the crypto investment product.

Bitcoin spot ETF is an investment product that follows the price of Bitcoin in the spot market, which is a market that offers direct transactions with cryptocurrencies. Bitcoin's ETF spot is different from Bitcoin futures or futures ETF, which follows the price of Bitcoin futures contracts on commodity exchanges.

The spot's Bitcoin ETF is considered more profitable for investors, as it provides direct access to crypto assets without the need to own a digital wallet or take care of security and storage issues. Bitcoin spot ETF is also expected to increase Bitcoin's market liquidity and transparency, as well as attract institutional and retail investors.

Currently, there are 11 Bitcoin spot ETF applicants waiting for the SEC's decision, including BlackRock. The SEC has a deadline of January 10 to make a decision on a joint Bitcoin spot ETF proposal from Cathie Wood's Ark Invest and 21shares. If approved, the first Bitcoin ETF spot in the US could start trading on the stock exchange.

BlackRock Is The Most Optimistic

BlackRock, which manages assets worth more than $9 trillion, is one of the most optimistic Bitcoin spot ETF applicants. The company expects the SEC to approve Ishares of its Bitcoin Trust, which will be the first Bitcoin spot ETF launched by global asset manager.

According to a Fox Business report, BlackRock has appointed Jane Street and JPMorgan as autorelated participants, namely the party responsible for creating and redeeming the ETF unit.

BlackRock is not alone in this optimism. Sjeumlah an analyst and crypto expert also believes that the SEC will give its approval of Bitcoin spot Bitcoin earlier this year. The SEC is currently led by Gary Gensler, who is known as a former blockchain professor at MIT.

In addition, the SEC has also approved several Bitcoin ETF futures last year, which showed regulatory openness to crypto investment products. Bitcoin's first-term ETF in the US, ProShares Bitcoin Strategy ETF, launched in October 2021 and managed to raise assets of more than $1 billion (IDR 15.5 trillion) in less than a month.