BlackRock (BLK) Files to Offer Spot Bitcoin ETF Amid Crypto Push
BlackRock, Inc. BLK has filed an application with the U.S. Securities and Exchange Commission (“SEC”) to offer a spot bitcoin exchange traded fund (“ETF”). Per the filing, the fund will be called iShares Bitcoin Trust and will use Coinbase Custody as its custodian.
If BLK’s application receives approval, then the fund will become the first publicly traded spot bitcoin ETF in the United States.
In August 2022, BLK launched a spot bitcoin private trust for institutional clients in the United States. If approved, this ETF will help BLK expand its partnership with battered crypto exchange Coinbase.
BlackRock’s move to offer the spot bitcoin ETF comes at a time when the cryptocurrency industry is battling criticism by the SEC over alleged securities law violation.
Earlier this month, the SEC sued Coinbase and the world’s largest crypto exchange, Binance, alleging securities violations.
In fact, the SEC has proposed new custody rules that will place additional responsibilities on asset managers to make sure that customer assets are kept in properly segregated accounts.
There is no guarantee that BLK’s application will be approved by the SEC. The SEC has already rejected several proposals by other asset managers on the belief that the tokens trade on unregulated exchanges with surveillance and manipulation risks.
Last year, the SEC rejected Grayscale Investment LLC’s application to convert its flagship spot Grayscale Bitcoin Trust into an ETF.
Thus, Grayscale sued the regulator, claiming that it was acting arbitrarily in rejecting applications for spot bitcoin ETFs when it had previously approved bitcoin futures ETFs.
Over the past six months, shares of BLK have gained 2.7% compared with the industry’s 5.8% rise.
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Currently, BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks from the same space are Artisan Partners Asset Management Inc. APAM and Capital Southwest Corporation CSWC.
Artisan Partners Asset Management currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the company’s current-year earnings has been revised 3.4% upward over the past 60 days. APAM’s share price has increased 27.3% in the past six months.
Capital Southwest’s Zacks Consensus Estimate for current fiscal year earnings has been revised 2% upward over the past 60 days. CSWC’s share price has increased 13.6% in the past six months. The company currently carries a Zacks Rank of 2.
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BlackRock, Inc. (BLK) : Free Stock Analysis Report
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