BlackRock, the world’s largest asset manager, has submitted a revised version of its spot Bitcoin ETF proposal to the U.S. Securities and Exchange Commission (SEC). The updated filing, dated December 4, 2023, indicates that BlackRock intends to offer an exchange-traded fund that will invest directly in Bitcoin, rather than through futures contracts or other derivatives. This would make it the first spot Bitcoin ETF in the U.S., if approved by the SEC.
The filing states that the BlackRock Bitcoin ETF will seek to track the performance of the Bloomberg Galaxy Bitcoin Index, a benchmark that measures the price of Bitcoin based on data from multiple exchanges. The fund will use a custodian to hold the Bitcoin on behalf of the shareholders and will charge a management fee of 0.75% per year. The fund will also employ various risk management and security measures to protect the investors and comply with the regulatory requirements.
BlackRock, the world’s largest asset manager, has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin exchange-traded fund (ETF). The proposed fund, named BlackRock Bitcoin ETF, will seek to track the performance of the Bloomberg Galaxy Bitcoin Index, which measures the price movements of Bitcoin based on data from selected cryptocurrency exchanges.
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The filing comes amid growing investor interest and demand for exposure to Bitcoin, which has surged more than 300% in 2021 and reached a new all-time high of over $68,000 in November. Bitcoin ETFs are seen as a way to provide easier and cheaper access to the cryptocurrency market, as well as to reduce some of the risks and challenges associated with buying and storing Bitcoin directly.
BlackRock is not the first company to apply for a Bitcoin ETF in the U.S., but it is certainly one of the most influential and reputable ones. The SEC has so far rejected or delayed several applications for Bitcoin ETFs, citing concerns over market manipulation, fraud, and lack of regulation.
However, some analysts believe that the SEC may soon approve a Bitcoin ETF, given the increasing maturity and liquidity of the cryptocurrency market, as well as the regulatory developments in other countries such as Canada and Brazil, where Bitcoin ETFs have already been launched.
If approved, BlackRock Bitcoin ETF could be a game-changer for the cryptocurrency industry, as it would attract more institutional and retail investors to the space, potentially boosting the adoption and value of Bitcoin. It would also enhance BlackRock’s position as a leader and innovator in the asset management industry, as it would be one of the first major firms to offer a Bitcoin ETF to its clients.
The BlackRock Bitcoin ETF is one of several spot Bitcoin ETF applications that are currently pending before the SEC. The regulator has not yet approved any of them, citing concerns about market manipulation, investor protection, and custody issues. However, some analysts believe that the SEC may be more receptive to spot Bitcoin ETFs than futures-based ones, as they would provide more transparency and liquidity to the market.
The firm has also expressed interest in other digital assets, such as stablecoins and central bank digital currencies (CBDCs). In October 2023, BlackRock CEO Larry Fink said that he was “fascinated” by Bitcoin and that he believed it had “a huge role” in the future of finance.
Itau Unibanco Bank launches Bitcoin and crypto trading in Brazil
Brazil’s largest bank, Itau Unibanco, has announced that it will offer its customers the option to buy and sell Bitcoin and other cryptocurrencies through its digital platform. The bank said that it has partnered with US-based crypto exchange Gemini to provide the service, which will be available in the first quarter of 2024.
Itau Unibanco is the first major Brazilian bank to enter the crypto market, following the footsteps of other global financial institutions that have embraced digital assets in recent years. The bank said that it sees crypto as an innovative and disruptive technology that can offer new opportunities for its clients and the Brazilian economy.
The bank’s CEO, Candido Bracher, said in a statement that “We are very excited to launch this initiative, which is aligned with our vision of being a leading digital bank in Latin America. We believe that crypto can play a key role in the future of finance, and we want to offer our customers access to this new asset class in a safe and convenient way.”
Trust Charter with Gemini Exchange
Itau Unibanco, the largest bank in Latin America, has announced a strategic partnership with Gemini Exchange, a leading cryptocurrency platform based in New York. The partnership will enable Itau Unibanco to offer its clients access to the regulated and secure crypto ecosystem of Gemini, as well as to leverage its expertise in digital assets.
According to the press release, Itau Unibanco will apply for a trust charter from the New York State Department of Financial Services (NYDFS), which will allow it to custody and trade cryptocurrencies on behalf of its customers. The bank expects to receive the approval by the end of 2023.
The partnership with Gemini is part of Itau Unibanco’s digital transformation strategy, which aims to provide innovative and diversified solutions for its clients in the fast-changing financial landscape. The bank believes that cryptocurrencies are an important asset class that can offer diversification, hedging, and new opportunities for its customers.
Gemini Exchange, founded by the Winklevoss twins, is one of the most reputable and compliant crypto platforms in the world. It operates under a trust license from NYDFS and adheres to high standards of security, transparency, and regulatory oversight. Gemini also offers a suite of products and services for institutional and retail investors, such as custody, trading, lending, staking, and NFT marketplace.
The partnership between Itau Unibanco and Gemini Exchange is a milestone for the crypto industry, as it marks the first time that a major Latin American bank collaborates with a US-based crypto platform. It also demonstrates the growing interest and adoption of cryptocurrencies among traditional financial institutions and their clients.
The bank said that it will initially offer Bitcoin, Ethereum, Litecoin and Bitcoin Cash trading, and that it plans to expand its crypto portfolio in the future. The bank also said that it will comply with all the regulatory and security requirements for crypto transactions, and that it will use Gemini’s custody and settlement services to ensure the safety of its clients’ funds.
Gemini’s co-founder and CEO, Tyler Winklevoss, said that “We are thrilled to partner with Itau Unibanco, one of the most respected and innovative banks in Latin America. Gemini is committed to building bridges between the traditional and crypto worlds, and we look forward to working with Itau Unibanco to bring the benefits of crypto to millions of Brazilians.”