Another Physical Bitcoin ETF Application Lands in Long-Shot Bid

(Bloomberg) -- BlockFi Inc. has joined the list of firms hoping that U.S. regulators might soon have a change of heart when it comes to physically-backed Bitcoin funds. 

The BlockFi NB Bitcoin ETF, a joint venture with an affiliate of Neuberger Berman Group LLC, would hold the world’s largest cryptocurrency in order to track its returns, according to a Monday filing with the Securities and Exchange Commission. 

While the first U.S. Bitcoin futures-based ETFs launched last month, SEC head Gary Gensler has yet to signal that approval for a fund that would hold cryptocurrencies itself is imminent. The SEC has stood against allowing such funds for years, citing concerns on everything from price manipulation to liquidity. Even still, issuers such as Bitwise Asset Management and Grayscale Investments LLC have filed applications for physical ETFs in the past month. 

“Until Gensler shows some evolution mentally, this thing is on ice with the other 20 or so of them,” said Eric Balchunas, senior ETF analyst with Bloomberg Intelligence. “I don’t think the SEC can be pressured.”

Bitcoin jumped 5% to just below its all-time high of $67,000 on Monday, bringing year-to-date gains to nearly 130%. 

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