BlackRock applies for a Bitcoin ETF spot in the SEC’s race.

The American investment company and asset manager BlackRock (NYSE: BLK) has applied to the US Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF). The application, submitted on Thursday, is for the iShares Bitcoin Trust ETF, with Coinbase (NASDAQ: COIN) serving as the Bitcoin custodian and Bank of New York Mellon (BNY Mellon) serving as the custodian for cash holdings.

BlackRock intends for the Bitcoin ETF to help interested investors invest in Bitcoin without direct access to it, and to avoid any complexities involved in direct exposure to Bitcoin while maintaining the corresponding intrinsic value.

However, the SEC has so far rejected all applications for a spot Bitcoin ETF, including proposals submitted by Cboe Global Markets, the New York Digital Investment Group (NYDIG), Grayscale Investments, and Fidelity Investments. The SEC has claimed that each proposal is incomplete and provides inadequate measures to protect investors from fraudulent or unscrupulous activity.

These rejections have been met with backlash from proposers and the general crypto community, with Grayscale filing a lawsuit against the SEC for the rejection and receiving support from Coinbase. Although Grayscale seems confident, it plans to refund investors if it loses the case.