Shares of Coinbase Global, which is listed as the custodian for the fund’s bitcoin holdings, leapt more than 40% over the same period. Approval of such a fund—known as a spot bitcoin ETF—by the Securities and Exchange Commission would mark a milestone for the industry and offer wider access to the cryptocurrency. Yet the SEC has repeatedly rejected spot bitcoin ETF applications going back to 2017 on the grounds that they are vulnerable to fraud and market manipulation. Balchunas and his team put the odds of a spot bitcoin ETF approval at 50%, up from just 1% a month ago, before BlackRock filed its application. The latest leg of the race to launch a spot bitcoin ETF hit a speed bump last week when the SEC said the applications were inadequate.

Source: Wall Street Journal July 10, 2023 14:13 UTC