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The United States Securities and Exchange Commission (SEC) has accepted BlackRock’s application for a spot Bitcoin exchange-traded fund (ETF), indicating the start of the official regulatory review process. This comes after the SEC’s acknowledgment of a similar application by Bitwise the day before. The acceptance of BlackRock’s application demonstrates the SEC’s willingness to explore the concept of a spot Bitcoin ETF and evaluate its potential impact on the market.

ETFs are investment funds that typically track specific indexes and are traded on exchanges. In the realm of cryptocurrencies, a cryptocurrency ETF is a fund that mirrors the value of one or more digital tokens and consists of a range of cryptocurrencies.

The SEC also announced that it is currently reviewing applications for several other funds, including Wise Origin Bitcoin Trust, WisdomTree, VanEck, and Invesco Galaxy. BlackRock’s entry into the race to launch a spot Bitcoin ETF is significant due to the company’s prominence in the financial industry. In its filing, BlackRock included an agreement for “surveillance-sharing” with cryptocurrency exchange Coinbase.

The competition among companies seeking to be the first to launch a Bitcoin ETF in the United States is seen as a positive development for the crypto industry. Multiple filings increase the chances of success, and diverse proposals allow the SEC to assess different strategies and concerns.

While the SEC has yet to approve a spot Bitcoin ETF in the United States, Canada has already approved such financial products. Three notable funds, namely Purpose Bitcoin, 3iQ CoinShares, and CI Galaxy Bitcoin, have received regulatory approval in Canada.

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