Leading global investment manager BlackRock has filed an application for a Bitcoin spot exchange-traded fund (ETF), in what would be a “first” spot ETF for crypto in the United States, if approved.

Known as the iShares Bitcoin Trust, the assets of the Trust consist primarily of bitcoin held by a custodian on behalf of the Trust. Coinbase Custody has been chosen as the custodian for the Trust’s bitcoin holdings, with Bank of New York Mellon as the custodian for its cash holdings. BlackRock’s iShares Bitcoin Trust would be traded as Commodity-Based Trust Shares.

Notably, the Securities and Exchange Commission (SEC), the regulatory body responsible for overseeing ETFs in the United States, has consistently rejected all applications for a spot bitcoin ETF thus far. However, the commission has previously approved several bitcoin futures ETFs. 

The market responded positively to the development, as Bitcoin (BTC) gained about 3.6%, jumping past $25,700 from $24,800 lows. Recently, the market has experienced uncertainty as Bitcoin dipped below $25,000 for the first time in three months, amid increasing regulatory scrutiny by the United States Securities and Exchange Commission (SEC). 

Being a prominent player in the traditional financial sector, BlackRock's filing for a spot Bitcoin ETF represents a significant milestone in the crypto industry. If granted, it would mark a pivotal moment, opening doors to a new wave of adoption and providing investors with an unprecedented opportunity to participate in the Bitcoin market through a regulated and easily accessible investment vehicle.