TechFlow reports that BlackRock's iShares division has filed a Bitcoin trust application with the U.S. Securities and Exchange Commission (SEC).
Anthony Pompliano, co-founder of Morgan Creek Digital, noted that this is not a Bitcoin ETF but rather a Bitcoin trust. While there are some technical differences in regulation and approval, the end result for investors is similar. Pompliano believes the best outcome would be SEC approval of a true spot Bitcoin ETF.
He also pointed out that BlackRock filing the trust application without full confidence may indicate certain risks associated with the filing.
Furthermore, this development could lead to several potential consequences: GBTC might be forced to introduce daily redemptions to stay competitive; GBTC might be compelled to reduce fees; many Wall Street firms could launch follow-on products to compete with BlackRock; and increased media attention could drive more capital into Bitcoin. The Bitcoin trust’s assets are expected to consist primarily of Bitcoin held by a custodian on behalf of the trust, with cryptocurrency exchange Coinbase serving as the custodian.
