• Trillion-dollar company BlackRock has recently applied for a Bitcoin spot exchange-traded fund (ETF).
• The ETF would be in the custody of Coinbase Custody Trust Company and the fiat will be in the custody of the Bank of New York Mellon.
• SEC has not yet approved any applications for spot Bitcoin ETFs, with Grayscale taking them to court over their rejection.

BlackRock Files Application for Bitcoin Spot ETF

BlackRock, a trillion-dollar company, has joined the list of companies awaiting approval for a Bitcoin spot exchange-traded fund (ETF) after applying recently. Other companies expecting to become the first crypto spot ETF in the United States include Ark Investment and Grayscale.

Details on the Proposed ETF

The filing by BlackRock with the U.S. Securities and Exchange Commission disclosed that the fund’s Bitcoin holding would be in the custody of Coinbase Custody Trust Company while its fiat will be in custody of Bank of New York Mellon. The Shares have been designed to remove obstacles represented by complexities and operational burdens involved in direct investment in Bitcoin. During regular Market trading, the Bitcoin price would be updated every 15 minutes using CF Benchmarks Index.

SEC’s Rejection Rate

Interestingly, Coinbase being expected to take custody of the Bitcoin holdings is currently flagged by SEC as a non-compliant company which could lead to another rejection from SEC who already have a zero approval rate when it comes to approving these kinds of applications.

Grayscale Sues SEC

With several rejected applications so far, Grayscale responded by taking SEC to court for rejecting its application for a BTC spot exchange-traded fund (ETF). Former solicitor general Donald Verrilli Jr who represented Grayscale argued at District of Columbia Circuit Court of Appeals that SEC’s order is not in line with other approvals given.

Can This Drive BTC Price To $100,000?

It remains unknown whether BlackRock’s application will get approved or not but if it does, it can potentially drive BTC price towards $100,000 considering that this is a major player entering into cryptocurrency space and investing heavily into BTC would definitely increase demand significantly leading to an appreciation in prices eventually settling around $100K mark if all other factors remain same i.e no major hacks or government crackdowns etc..