BlockFi Moves to Launch Physically-Backed Bitcoin ETF Amid Anticipated SEC Decision

BlockFi Takes a Bold Step

In a game-changing maneuver for cryptocurrency, BlockFi has formally submitted paperwork to the United States Securities and Exchange Commission (SEC) to initiate a physically-backed Bitcoin exchange-traded fund (ETF). This move could signal the start of an exciting week for the crypto markets as hopes rise for increased approval momentum.

Details of the Filing

The Form S-1, filed on a recent Monday, outlines that BlockFi will assume the role of custodian. Unlike other proposals, the ETF aims to mirror the true performance of Bitcoin instead of relying on futures or derivatives benchmarks. The filing states, “The Trust will not purchase or sell bitcoin directly, although the Trust may direct the Custodian to sell bitcoin to pay certain expenses.” This hints at a more straightforward approach in a complicated marketplace.

Crypto Twitter Buzzing

As news of the ETF circulated, Twitter exploded with chatter, particularly within the cryptosphere. Speculation suggests that the SEC is on the verge of granting its approval for a physical Bitcoin ETF—potentially by the end of the week. It’s like waiting for your favorite show to drop a new season, and the cliffhanger is killing everyone!

The SEC’s Decision Timeline

The anticipation is palpable, especially with major dates looming on the horizon. Notably, the SEC’s verdict regarding the highly awaited VanEck spot Bitcoin ETF is slated for this Sunday. Analyst James Seyffart has been remarkably vocal, insisting that it’s time to end the suspense: “It will be either approval or denial from SEC — no more delays.” The crypto community is biting its nails with excitement.

A Glimpse into the Future of Bitcoin ETFs

In recent history, the SEC has made its inaugural foray into Bitcoin ETFs by approving ProShares’ Bitcoin Strategy ETF, albeit with the stipulation that it connects to BTC futures rather than the spot price. This caveat doesn’t dampen the enthusiasm surrounding Bitcoin ETFs. In fact, the immediate success of ProShares’ fund, which amassed over $1 billion on its first day, indicates a robust appetite among investors eager for exposure to Bitcoin.

As BlockFi enters the ring, with its plans to launch a physically-backed vehicle, the rollercoaster journey of Bitcoin ETFs is bound to get even more thrilling. Buckle up!