The U.S. Securities and Exchange Commission (SEC) has accepted BlackRock’s application for a spot bitcoin (BTC) exchange-traded fund (ETF), following a similar application from Bitwise the previous day.

SEC’s thank you Marks the start of a formal review process for BlackRock ETF proposals. While this is the first step in a lengthy regulatory process, it signals that the SEC is ready to explore the idea of ​​a spot bitcoin ETF and assess its potential market impact.

ETFs are investment funds that typically follow a specific index and are typically traded on an exchange. In the cryptocurrency space, a fund that reflects the value of one or more digital tokens and contains multiple cryptocurrencies is called a cryptocurrency ETF.

On Friday, July 14, regulators Announce It is also reviewing applications for various funds, including Wise Origin Bitcoin Trust, WisdomTree, VanEck and Invesco Galaxy.

Due to BlackRock’s status in the financial industry, its participation in the spot bitcoin ETF race is significant. Its spot bitcoin ETF application includes a “monitoring sharing” agreement with cryptocurrency exchange Coinbase.

related: Cryptocurrencies Will Overtake International Currencies – BlackRock CEO

The race among firms to become the first in the U.S. to launch a bitcoin ETF is seen by many as a positive development for the crypto industry. With multiple submissions, the chances of success increase, and different proposals allow the SEC to evaluate different strategies and issues.

The US SEC has not yet approved a spot bitcoin ETF; however, in Canada, the financial product is already listed. Three important funds: Purpose Bitcoin, 3iQ CoinShares and CI Galaxy Bitcoin have been approved by the country’s regulators.

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