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BlockFi files for Spot Bitcoin ETF with Neuberger Berman Group

  • BlockFi files with the SEC for a spot Bitcoin ETF.
  • The BlockFi NB Bitcoin ETF would buy and hold Bitcoin through an undisclosed custodian.
  • The offering grew out of a collaboration between the credit platform and the Neuberger Berman Group, a $ 400 billion investment manager.

BlockFi lending platform today filed an application with the US Securities and Exchange Commission (SEC) to offer a spot Bitcoin Exchange Traded Fund (ETF) in the country. The BlockFi NB Bitcoin ETF would trade on the New York Stock Exchange and hold actual BTC, but the third party that would serve as the fund’s custodian was not disclosed.

“The investment objective of the trust is to have the stocks reflect the performance of the bitcoins held by the trust, minus the costs of the trust and other liabilities,” the filing stated. “The Trust will not attempt to track the performance of any benchmark or index. In order to achieve its investment objective, the trust will hold Bitcoin. “

The BlockFi NB Bitcoin ETF is the result of a joint venture between the BlockFi lending platform and the Neuberger Berman Group, a privately owned, employee-owned investment company with over $ 400 billion in assets under management.

Bitcoin-related ETFs recently went live in the US, investing in Bitcoin futures, trading billions of dollars and breaking records shortly after launch. However, because of the inherent drawbacks of derivative-based offerings, investors are looking ahead and waiting for a product that invests directly in Bitcoin to be approved.

However, the outlook for spot Bitcoin ETFs is not good as the SEC clearly favors derivative-based products. In September, the chairman of the commission, Gary Gensler, said that such offers had the highest chance of approval compared to spot Bitcoin ETFs. After two months have passed and two Bitcoin futures ETFs have been approved, the SEC’s approach appears to be holding up.

While investors may not enjoy BTC exposure with the practicality a spot Bitcoin ETF would offer, they can use a few simple tools to buy bitcoin themselves and hold real bitcoins in place of a IOU – the only way to really get around to benefit from Bitcoin’s value proposition.

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