BlackRock, the world's largest asset manager, has submitted an application for a Bitcoin exchange-traded fund (ETF), offering investors access to cryptocurrency amid close regulatory scrutiny. The iShares Bitcoin Trust, a division of BlackRock, will collaborate with Coinbase Custody, according to the SEC.

Last year, BlackRock launched a spot bitcoin private trust aimed at its institutional clients in the U.S. This move occurs amid ongoing legal battles between cryptocurrency firms and the SEC, with recent attention drawn to Coinbase and Binance.

Joshua Chu, Group Chief Risk Officer at XBE, views BlackRock's ETF application positively, highlighting its potential regulatory approval and reflecting growing interest in crypto. A spot bitcoin ETF could influence bitcoin's market valuation.

However, similar applications by Grayscale Investments, Fidelity, Cboe Global Markets, and NYDIG faced rejection by the SEC, resulting in a 2% drop in bitcoin prices upon announcement. CoinDesk first reported BlackRock's ETF application, and the outcome remains uncertain.