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BlockFi submits Bitcoin ETF request on demand to SEC

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The cryptocurrency company BlockFi has submitted to the US Securities and Exchange Commission, the SEC, a request to launch an exchange-traded fund (ETF) of Bitcoin based on the cash market.

The initiative is the result of a partnership between BlockFi and investment management company Neuberger Berman.

Form S-1 for the “BlockFi NB Bitcoin ETF” was submitted to the SEC on Monday (8).

BlockFi NB Bitcoin ETF

According to official documents, BlockFi will be the custodian of the assets.

As mentioned, the ETF intends to offer shares that reflect the cash value of Bitcoin held by the fund. In other words, it is not a BTC futures ETF like the one from ProShares, approved in an unprecedented way, in October.

The document also says that the fund “will not buy or sell Bitcoin directly, although it may direct the custodian to sell Bitcoin to pay certain expenses”.

If the SEC approves the request, the shares issued by the ETF will be traded on the New York Stock Exchange.

It is noteworthy that, about a month ago, BlockFi submitted to the SEC an ETF request for Bitcoin futures. But the request has not yet been approved.

Founded in 2017, BlockFi aims to build a bridge between cryptocurrencies and traditional financial and management products.

Meanwhile, Neuberger Berman is a private investment manager who manages more than $437 billion in assets.

Bitcoin ETFs

The new request for a spot ETF from BTC joins more than 20 proposals that are awaiting a decision from the regulator. Among them is the request by VanEck whose deadline for review by the SEC is November 14th.

According to Bloomberg senior ETF analyst Eric Balchunas, BlockFi’s proposal is a way for the company to stay on the list of issuers vying for regulatory approval. “But until Gensler indicates that he changed his mind about Bitcoin products, the order is frozen like the rest (25) of them,” he said Balchunas.

The first BTC futures ETF, the ProShares Bitcoin Strategy ETF, was approved by the SEC on October 19th.

While not what the Bitcoin community expected, the launch of the ETF was a success. After all, nearly $1 billion was traded on the first day.

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