BlackRock Moves Forward With Bitcoin ETF, Confirms Coinbase As Custodian In Form S-1 Registration

In the face of the U.S. Securities and Exchange Commission's (SEC) amplified scrutiny on the crypto industry and Bitcoin (CRYPTO: BTC) prices currently hovering at the $25,000 mark, BlackRock Inc (NYSE: BLK), the world's largest asset manager, seems undeterred about its involvement in the sector.

The firm is now reportedly moving towards filing an application for a Bitcoin exchange-traded fund (ETF), according to a Form S-1 Registration statement filed with the U.S. Securities and Exchange Commission (SEC). 

In an exciting reveal, Coinbase Global Inc (NASDAQ: COIN) Custody Trust Company, LLC is named as the custodian for the Trust's Bitcoin holdings, a fact that aligns with previous insider information.

As per the registration statement, the iShares Bitcoin Trust plans to continuously issue shares that represent fractional undivided beneficial interests in the trust's net assets. The trust will issue and redeem shares only in batches of 40,000 or integral multiples thereof, known as "baskets," with transactions taking place in exchange for Bitcoin.

These baskets are redeemable only by authorized participants, who are registered broker-dealers that enter into a contract with the sponsor and the trustee.

Significantly, the shares of the iShares Bitcoin Trust are set to be listed and traded on the NASDAQ, with a yet-to-be-revealed ticker symbol. The public will be able to purchase these shares at prices reflecting the Bitcoin price and the trading price of the Shares on NASDAQ at the time of offering.

BlackRock's Resilience Amidst Intensifying SEC Scrutiny

This revelation underlined BlackRock's determination to make the crypto asset class more accessible to institutional investors. It also showcased the firm's optimism about Bitcoin's potential, even as the SEC ramps up its actions against major crypto industry players.

Major exchanges such as Binance and Coinbase are currently facing lawsuits from the regulatory body, emphasizing the need for a robust regulatory framework for the crypto industry.

Despite the added regulatory pressures, BlackRock's pursuit of a Bitcoin ETF signals a significant stride in the institutional adoption of cryptocurrency. This move aligns with BlackRock's growing exposure to Bitcoin through its stake in MicroStrategy (NASDAQ: MSTR), the largest corporate holder of Bitcoin.

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