Hassan Maishera
BlockFi Joins the Bitcoin ETF Race
Blockchain-based firm BlockFi has filed a proposal for a spot bitcoin ETF with the Securities and Exchange Commission (SEC). The regulatory agency revealed this latest information in an S-1 form submitted yesterday.
Dubbed the BlockFi NB Bitcoin ETF, it has become the latest ETF seeking to track Bitcoin’s spot price. The filing said, “BlockFi NB Bitcoin ETF (the “Trust”) is an exchange-traded fund that issues common shares of beneficial interest (the “Shares”) that trade on the New York Stock Exchange (the “Exchange”). The Trust’s investment objective is for the Shares to reflect the performance of bitcoins held by the Trust, less the Trust’s expenses and other liabilities. The Trust will not seek to reflect the performance of any benchmark or index. In seeking to achieve its investment objective, the Trust will hold bitcoin. BlockFi NB LLC (the “Sponsor”) is the sponsor of the Trust, Delaware Trust Company (the “Trustee”) is the trustee of the Trust, and [] (the “Custodian”) is the custodian of the Trust, who will hold all of the Trust’s bitcoin on the Trust’s behalf.”
Following this filing, there are now 20 Bitcoin ETF proposals in the United States seeking to track Bitcoin’s performance. The US SEC continues to delay Bitcoin ETF proposals as it is concerned about possible price manipulation.
The SEC has approved Bitcoin futures ETFs but is yet to approve spot Bitcoin ETFs. The BlockFi NB Bitcoin ETF joins the firm’s proposed futures offering, the BlockFi Bitcoin Strategy Fund. The SEC chair Gary Gensler has made it clear that he prefers to approve futures-based bitcoin products under the Investment Companies Act of 1940 instead of spot Bitcoin ETFs.
Bitcoin recently hit a new all-time high at $68,641 and could be on track to top the $70k level over the coming hours and days.
