Among the main reasons for the rise of Bitcoin in the recent period was the application of the world's largest asset management companies for spot Bitcoin ETFs, respectively.
After the applications of giant investment companies such as Blackrock and Fidelity, there was an increase of about 20% in Bitcoin.
The SEC has long disapproved of spot Bitcoin ETFs and has been rejecting requests for similar reasons. Blackrock, one of the largest asset management companies in the world, made an application for investors to ask, “Is it different this time?” It made him ask the question.
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At this point, Coinbase's position in the spot Bitcoin ETF applications was confusing. As you know, the SEC sued Coinbase last month and said it violated securities laws.
Blackrock is collaborating with Coinbase for its cryptocurrency operations and will also work with Coinbase if the spot Bitcoin ETF is approved.
Some lawyers told Reuters that the Coinbase partnership may be one of the trojans in Blackrock's spot Bitcoin ETF filing.
John Reed Stark, former chair of the SEC, also touched on this issue and had the following to say about the Blackrock application:
“I don't think it's a badge of honor to work with a company that the SEC is suing to protect investors. The main reason for the SEC's lawsuit is transparency issues at Coinbase.”
During a session yesterday, SEC chairman Gary Gensler was asked about Coinbase being at the center of ETF filings and whether this would have an impact on ETF filings, but the veteran chairman did not respond.
While lawyers generally don't expect the SEC to reverse its previous rulings, Bloomberg's senior ETF analyst Eric Balchunas thinks there is still hope through Coinbase.
According to Balchunas' thesis; Nasdaq and Blackrock already knew about Coinbase's problems with the SEC. The SEC may be aiming to leverage ETF applications to fix these issues, and investment companies may be aiming to resolve these issues at Coinbase and reach ETF approval.