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BlackRock Acknowledges Rising Competition in Bitcoin ETF Space as it Amends Prospectus

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“BlackRock’s amendment to its Bitcoin ETF prospectus not only acknowledges the intensifying competition within the cryptocurrency market but also highlights the company’s commitment to staying ahead in the rapidly evolving landscape.”

BlackRock has submitted an amended prospectus for its spot Bitcoin exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC). The new filing includes updates on the competition for Bitcoin ETF approval and provides detailed explanations on pricing and reporting mechanisms.

In June 2023, BlackRock filed its first spot Bitcoin application called iShares Bitcoin Trust. The asset manager refiled in July to include a surveillance sharing agreement with its custodian Coinbase and Nasdaq.

The latest filing from BlackRock acknowledges the uncertainty of achieving initial market acceptance and scale due to competition. Currently, BlackRock is competing with at least seven other applicants, including Grayscale, the largest Bitcoin trust fund.

Grayscale recently won a court case against the SEC, boosting confidence in the approval of Bitcoin ETFs. The SEC opted out of challenging the court’s ruling, further increasing the likelihood of approval.

The amended filing also provides more specific details about the pricing source of the ETF in the Trust’s periodic financial statements. It includes accounting specifications such as “Level 1 input according to ASC Topic 820,” which were not mentioned in previous drafts.

BlackRock’s ETF will be based on the CF benchmark index, which aggregates Bitcoin’s price across multiple exchanges. The filing provides a detailed analysis with examples of how the index will determine the ETF’s pricing.

BlackRock is the third applicant to file an amended spot Bitcoin filing within a week, following Ark Invest and Fidelity. Experts suggest that these amendments are a positive sign and indicate solid progress towards approval.

In conclusion, BlackRock’s amended prospectus for its spot Bitcoin ETF application includes updates on competition, pricing, and reporting mechanisms. The filing demonstrates the asset manager’s commitment to securing approval for its ETF in a competitive landscape.

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