BlackRock, one of the world’s largest asset managers, has filed plans with the U.S. Securities and Exchange Commission to create a spot Bitcoin ETF through its iShares subsidiary.
The news comes after reports earlier in the day that the investment giant was close to filing for a spot Bitcoin ETF.
The spot ETF entity, named iShares Bitcoin Trust, was formed on June 8 and aims to reflect the performance of the price of the premier cryptocurrency, if approved.
According to the filing, the trust’s purpose is “own bitcoin transferred to the trust in exchange for shares issued by the trust,” and the trust’s assets consist mainly of Bitcoin.
Coinbase as custodian
Coinbase Custody Trust Co. LLC will serve as the custodian for the trust’s bitcoin holdings, with Bank of New York Mellon as the custodian for the trust’s cash holdings.
The shares issued by the ETF are expected to be listed on Nasdaq, with a symbol yet to be determined.
According to the filing, the ETF intends to issue and redeem shares only in blocks of 40,000 or integral multiples thereof, with a block of 40,000 shares named a “Basket.”
These issuance and redemption transactions will take place in exchange for Bitcoin, with Baskets offered continuously at the net asset value per Share for 40,000 shares on the day that an order to create or redeem a Basket is accepted by the ETF.
More details to follow…
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