Crypto lender BlockFi has filed papers with the US Securities and Exchange Commission (SEC) for the launch of a physically backed bitcoin trading fund that is expected to be a big week for the cryptocurrency markets.
The BlockFi NB Bitcoin ETF Form S-1 file was submitted to the Securities and Exchange Commission on Monday, according to official documents. The statement says that BlockFi will act as a trustee and that the ETF’s investment objective is to reflect the underlying performance of Bitcoin rather than any future references or derivatives.
The filing also states that “the trust will not buy or sell bitcoins directly, although the trust may order the custodian to sell bitcoins to pay for certain expenses.”
News of the ETF listing spread on Crypto Twitter amid rumors that the SEC may be nearing its first physical approval of a Bitcoin ETF as early as this week.
As noted by Bloomberg’s James Seifarth, the SEC’s decision on VanEck’s highly anticipated Bitcoin spot ETF will be made next Sunday. “There will be either approval or rejection from the SEC,” he said, which means “no more delays.”
On the topic: Why now? It took the Securities and Exchange Commission eight years to license the Bitcoin ETF in the United States.
Last month, the US Securities and Exchange Commission approved the Bitcoin-Strategic ETF ProShares, the country’s first BTC-traded fund. However, it agreed with a caveat – the price of the fund is tied to the bitcoin futures contract, not the spot price. Soon after the ProShares fund was approved, the Securities and Exchange Commission gave the go-ahead for the Bitcoin ETF Valkyries strategy, another future product.
While exchange-traded funds (ETFs) have not been what Bitcoin proponents are looking for, they have proven to be very popular with investors. As Cointelegraph reported, the ProShares ETF debuted with the highest natural volume on its first day, crossing $1 billion. By the end of October, institutional leaders had purchased over $2 billion worth of Bitcoin products in a single month, thanks in large part to the ETF approvals.