BlackRock’s Stand Against SEC Bias Amid Bitcoin and Ethereum Spot ETF Review
An investment giant is taking on the U.S. Securities and Exchange Commission (SEC), asserting that exchange-traded funds (ETFs) for Bitcoin (BTC) and Ethereum (ETH) in the spot market are essentially the same as futures ETFs.
In a recent filing, popular asset management firm BlackRock, overseeing assets exceeding $8 trillion, argues that the regulatory body should grant approval for spot market crypto ETFs, given its previous approval of futures ETFs.
BlackRock points out that the SEC’s approval of ETFs offering exposure to ETH futures, which are priced based on the underlying spot ETH market, should logically extend to approving ETPs providing exposure to spot ETH, like the Trust.
The firm accuses the SEC of misapplying the Investment Company Act of 1940 to spot ETFs, asserting that the Act’s investor protections do not specifically address potential harms from underlying assets or markets, such as fraud or manipulation.
BlackRock contends that the SEC’s justifications for denying other spot digital asset ETPs do not align with the 1940 Act’s explicit goals, which primarily focus on accounting, borrowing, custody, fees, and independent boards, without addressing the underlying assets or markets.
READ MORE: Will Bitcoin Follow Facebook’s IPO Rollercoaster After Potential Spot ETF Approval?
Ultimately, BlackRock argues that the SEC’s differentiation between futures ETFs and spot market ETFs is arbitrary, emphasizing that the regulatory treatment should be consistent for ETH-based ETP proposals.
Notably, BlackRock recently registered its iShares Ethereum trust in Delaware, mirroring its earlier registration of the Bitcoin trust.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
