• Bitcoin rose more than 1.3% in the hour after BlackRock’s iShares filed paperwork for a spot bitcoin ETF.
• The filing was for the formation of the iShares Bitcoin Trust, which will have Coinbase as its custodian.
• The price of Bitcoin had dipped below $25,000 a day earlier due to U.S. central bank hawkishness and increased regulatory scrutiny of crypto industry.
BlackRock’s iShares ETF Filing
BlackRock’s iShares unit recently filed paperwork with the U.S. Securities and Exchange Commission (SEC) for the formation of a spot bitcoin (BTC) exchange-traded fund (ETF). The new fund, called the iShares Bitcoin Trust, will be primarily composed of bitcoin held by Coinbase as custodian on behalf of the trust.
Impact on Bitcoin Price
The announcement caused an immediate impact on BTC’s price, which rose more than 1.3% in the hour following its release above $25,700 – a level it had not seen since dipping below $25K just one day prior. This dip was driven by concerns about U.S central bank hawkishness and increasing regulatory scrutiny in the cryptocurrency industry.
Reaction to BlackRock News
The BlackRock news has rekindled optimism about the possibility of a spot bitcoin ETF despite multiple rejected applications over the past 18 months from other companies trying to achieve such a feat with SEC approval.
U.S Regulatory Scrutiny
U.S regulators have been taking an increasingly strict stance towards cryptocurrencies and their associated activities such as Initial Coin Offerings (ICO). This has raised concerns among investors who fear that this could dampen enthusiasm for digital assets and stifle innovation in this sector going forward if regulations become too restrictive or overly complicated to follow through on compliant projects or investments within these markets..
Conclusion
Despite these regulatory headwinds, optimism remains high that ultimately a spot bitcoin ETF could be approved soon with Blackrock’s entry into this space being very promising news for those seeking institutional grade exposure into crypto markets without having to manage their own digital asset portfolio directly themselves