Cryptocurrency lending firm BlockFi has filed papers with the U.S. Securities and Exchange Commission, or SEC, to launch a physically backed Bitcoin exchange trading fund, kicking off what is expected to be a big week for the crypto markets.
The Form S-1 filing for BlockFi NB Bitcoin ETF was presented to the SEC on November 8, according to to official documents. The archive states that BlockFi will serve as a custodian and that the ETF’s investment goal is to reflect Bitcoin’s underlying performance as opposed to any futures or derivatives remarks.
The file further states that the “Trust will not buy or sell bitcoin directly, although the Trust may direct the Guardian to sell bitcoin to pay for certain expenses.”
News about the ETF list circulated on Crypto Twitter amid speculation that the SEC may be approaching its first physical Bitcoin ETF approval as early as this week.
– Dylan LeClair (@DylanLeClair_) November 8, 2021
Like James Seyffart of Bloomberg notes, the SEC’s decision on the highly anticipated VanEck location Bitcoin ETF is due on November 14th. “It will be either approval or denial by the SEC,” he said, meaning “no more delays.
Here is the current list of #Bitkoin and Crypto ETF signatures with the SEC. The next big date is still 11/14/21 for VanEck’s Bitcoin ETF site. It will be either approval or denial by SEC – no more delays. https://t.co/Z8phpVlsOK pic.twitter.com/g9ayoibmQN
– James Seyffart (@JSeyff) November 8, 2021
Related: Why now? The SEC took eight years to authorize a Bitcoin ETF in the United States
Last month, the U.S. securities regulator approved ProShares ’Bitcoin Strategy ETF, the country’s first BTC exchange fund. However, the approval came with a warning – the price of the fund is tied to BTC futures as opposed to the spot price. Shortly after approval by the ProShares fund, the SEC gave the green light to Valkyrie’s Bitcoin Strategy ETF, which is another product based on the future.
While the ETFs based on the future were not sought after by Bitcoin purists, they proved to be remarkably popular among investors. As reported by Cointelegraph, the ProShares ETF debuted with the highest natural day volume of more than $ 1 billion. By the end of October, institutional managers had bought more than $ 2 billion worth of Bitcoin products during the month, largely thanks to ETF approvals.