BlackRock Amending Bitcoin ETF Filing, Admits Fierce Competition

BlackRock replicated the move by applicants for the spot Bitcoin exchange-traded fund (ETF) to amend its filing. The Larry Fink-led asset management company on Wednesday, October 18, became the third applicant to amend its filing for spot Bitcoin.

Review of Amended ETF Prospectus

BlackRock confirmed resubmitting the amended prospectus for its Bitcoin ETF bid with the Securities and Exchange Commission (SEC). Among the notable changes captured in the new filing involves acknowledging the fierce competition as each applicant pursues Bitcoin ETF approval. Also, BlackRock altered the explanation offered regarding the products and reporting mechanisms. 

A revisit to BlackRock’s application for the ETF prospectus reveals that the leading global asset manager had, on June 15, 2023, submitted a bid under iShares Bitcoin Trust. The journey featured a refiling in July when the asset manager added the surveillance sharing agreement featuring Coinbase as its custodian and Nasdaq. 

BlackRock’s filing captures a confession that there is a lack of assurance that the iShares Bitcoin Trust will accomplish initial market acceptance, citing the heightened competition. 

BlackRock acknowledged it faces a race with seven applicants, among them Grayscale identified to run the most significant Bitcoin trust fund. Recently, Grayscale triumphed in a case questioning the SEC’s stance to deny a bid to convert the Grayscale Bitcoin Trust (GBTC) to the spot ETF. 

Community Optimistic of Bitcoin ETF Approval

The court’s directive for the SEC to review Grayscale’s application for Bitcoin ETF triggered optimism of Bitcoin ETF approval soon. The optimism grew following the SEC’s decision to opt out of appealing the court’s ruling. The development boosted confidence for Bitcoin ETF approval.

The latest filing by BlackRock captures pricing details of the exchanges that echoed the content of the periodic financial statements. The amendment captures how the pricing source is ascertained, including the accounting specifications and Level 1 input linked to ASC Topic 820. Such details were missing in the past drafts. 

The updated filing illustrates a detailed analysis of pricing mechanisms applied to the CF benchmark index. The index tracks and aggregates the Bitcoin pricing across multiple exchanges that would constitute the platform for the ETF.  

BlackRock follows the footsteps of Ark Invest and Fidelity, who have amended their filings. The amendment attracted support from experts who regarded the changes, signaling optimism and solid progress to SEC’s approval.