A few hours ago, financial giant BlackRock filed for a spot Bitcoin ETF, which came as a huge surprise to the crypto world as the filing came during a massive regulatory crackdown in the United States.
Interestingly, BlackRock chose Coinbase as its custodial provider, which was recently sued by the U.S. Securities and Exchange Commission for custodial violations, among other allegations. If the SEC approves BlackRock’s filing, that could also mean a quick settlement of the lawsuit.
Market analyst and pundit Will Clemente calls it “funny.” He adds that the SEC sued Coinbase even after its 2021 IPO was approved. And amid the ongoing lawsuit against Coinbase, BlackRock is calling the exchange its custodial partner. Note that this is the same BlackRock that once considered Bitcoin a “money laundering indicator.”
Will the US SEC support BlackRock?
But why would BlackRock take such steps at a time when the US Securities and Exchange Commission is pursuing top crypto players?
Previously, Graysclae Investments actively pushed for the transformation of the Grayscale Bitcoin Trust into a spot bitcoin ETF. If the SEC approves BlackRock’s filing, there is a possibility that Grayscale could sue the securities regulator. Will Clemente writes:
If Blackrock’s spot ETF bid is approved, it cannot be denied that Operation Chokepoint 2.0 was set up to oust crypto companies and bring in large traditional firms that are friendly with the US government to try to control bitcoin/cryptocurrency.