World’s largest asset manager BlackRock (BLK) filed for a bitcoin exchange-traded fund with the Securities and Exchange Commission Thursday, Reuters reported. BlackRock partnered with cryptocurrency exchange Coinbase (COIN) on the offering. BLK shares edged lower Friday while Coinbase stock surged during trading.
BlackRock’s iShares Bitcoin Trust will allow investors to gain exposure to the crypto once approved by U.S. regulators. Coinbase Custody will serve as the custodian for BlackRock, according to reports. However, the SEC has yet to approve any applications for spot bitcoin ETFs.
A spot ETF tracks the underlying price of an asset and would grant exposure to bitcoin without directly buying it.
BlackRock launched a spot bitcoin private trust for institutional U.S. clients last year.
The filing comes after the SEC expanded its crackdown on cryptocurrency companies, charging both Binance and Coinbase with rules violations.
BlackRock, Coinbase Stock
BlackRock slid 1% Friday after BLK stock climbed 2.7% during trading Thursday. Coinbase stock surged about 2.5% Friday and edged higher Thursday. Shares tumbled 17.5% last week following the SEC charges.
Bitcoin jumped 3.5% over the last 24 hours following the news, trading around $26,300 Friday afternoon. The world’s largest cryptocurrency dove below $25,000 for the first time since March on Thursday.
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