Anthony Pompliano, co-founder of Morgan Creek Digital, said on his social media platform that BlackRock's application is not for a bitcoin ETF, but rather a bitcoin trust. These products are only technically different, especially in terms of regulation and approval, but the end result for investors is similar.
Pompliano also said the product, if approved, could force GBTC to introduce daily redemptions and cut fees to compete with it. Many Wall Street firms are likely to launch fast-following products to compete with BlackRock.
As previously reported, fund management giant BlackRock's iShares unit filed an application with the SEC for the iShares Bitcoin Trust, whose assets would consist primarily of bitcoin held by a custodian on behalf of the trust. The filing states that the trustee will be crypto trading platform Coinbase.