In Brief:
- BlockFi has filed with the SEC to launch a spot Bitcoin ETF
- The aim is to reflect the performance of the bitcoin held by the Trust.
Cryptocurrency exchange and lending platform BlockFi has filed paperwork with the United States Securities and Exchange Commission (SEC), to release a physically-backed Bitcoin exchange-traded fund (ETF).
Since late October BlockFi has been planning to develop crypto ETFs with Neuberger Berman. The release of Form S-1 filing for BlockFi NB Bitcoin ETF to the SEC indicates the decision on the another long-awaited VanEck spot Bitcoin ETF will either be approved or denied, which means there would not be any more delays.
News of the ETF listing was all over crypto Twitter that the SEC may be nearing its first physical bitcoin ETF approval anytime this week.
BlockFi NB Bitcoin ETF (the “Trust”) is an exchange-traded fund that issues common shares of beneficial interest that trade on the New York Stock Exchange. The purpose is to reflect the performance of the bitcoins held by the Trust, while subtracting the Trust’s expenses and other liabilities in analysis.
The Trust also claims that it does not seek to reflect the performance on any benchmark or index. To achieve its investment objective, the Trust will hold bitcoin.
According to the preliminary prospectus released by the company, BlockFi NB LLC is the sponsor of the Trust, and Delaware Trust Company is the custodian of the Trust, who will hold all of the Trust’s bitcoin on the Trust’s behalf. The filing also states that Trust will not buy or sell bitcoin directly, although the Trust may sell bitcoin to pay certain expenses via custodian.
BlockFi is a New Jersey-based cryptocurrency lending service provider. Its stance to file paperwork to launch a physically-backed bitcoin ETF is perceived as big news for the crypto market. If the SEC approves this spot ETF then it could be the revolution in the crypto world.
