Cryptocurrency lending firm BlockFi has submitted an application for a physically-backed Bitcoin ETF to the US SEC on Monday. The company filed the proposal in a joint venture with investment management firm Neuberger Berman.
Unlike ProShares, which manages a futures-backed Bitcoin ETF, the “BlockFi NB Bitcoin ETF” will manage the fund that will offer direct exposure to Bitcoin in the US. In addition, the ETF will be registered under the Securities Act of 1933, and price information will be referred from the indexes offered by Coin Metrics, a crypto intelligence company.
.@BlockFi has filed for a '33 Act spot bitcoin ETF to follow up their futures ETF which they filed for a month ago. Takeaway: shows they want to be in the mix long-term but until Genz changes his mind this thing is on ice like the rest (25-ish) of them. https://t.co/sNVulqfBFT pic.twitter.com/czgTVdc6PC
— Eric Balchunas (@EricBalchunas) November 8, 2021
Meanwhile, if approved, the shares issued by the trust would be traded on the New York Stock Exchange. “The trust’s investment objective is for the shares to reflect the performance of bitcoins held by the trust, less the trust’s expenses and other liabilities,” the filing read. It added:
“The trust will not seek to reflect the performance of any benchmark or index. In seeking to achieve its investment objective, the trust will hold bitcoin.”
BlockFi previously applied for a Bitcoin futures ETF in early October after the SEC chairman Gary Gensler showed a favorable stance towards futures-based ETFs. “I look forward to the staff’s review of such filings, particularly if those are limited to these CME-traded bitcoin futures,” Gensler remarked in a statement in August.
With the recent filing, BlockFi has joined the list of more than 20 companies looking to offer spot Bitcoin ETFs.
Here's the current list of #Bitcoin and Crypto ETF filings with the SEC. Next big date is still 11/14/21 for VanEck's spot Bitcoin ETF. It will be either approval or denial from SEC — no more delays. https://t.co/Z8phpVlsOK pic.twitter.com/g9ayoibmQN
— James Seyffart (@JSeyff) November 8, 2021