The United States Securities and Exchange Commission (SEC) has accepted BlackRock’s application for a spot Bitcoin (BTC) exchange-traded fund (ETF) following its acknowledgment of a similar application by Bitwise the day before.

The SEC’s acknowledgment indicates the commencement of the official review process for BlackRock’s ETF proposal. While it is an initial step in a lengthy regulatory journey, it signals the SEC’s readiness to explore the idea of a spot Bitcoin ETF and assess its potential market effects.

ETFs are investment funds that typically follow specific indexes and are commonly traded on exchanges. In the realm of cryptocurrencies, a fund that mirrors the value of one or multiple digital tokens and comprises a variety of cryptocurrencies is known as a cryptocurrency ETF.

On Friday, July 14, the regulator announced that it is also in the process of reviewing applications for various funds, including Wise Origin Bitcoin Trust, WisdomTree, VanEck and Invesco Galaxy.

BlackRock’s entry into the spot Bitcoin ETF race is significant due to its stature in the financial industry. Its filing for a spot Bitcoin ETF included an agreement for “surveillance-sharing” with cryptocurrency exchange Coinbase.

The competition among companies vying to be the first to launch a Bitcoin ETF in the United States is seen by many as a positive development for the crypto industry. With multiple filings, the chances of success increase, with diverse proposals enabling the SEC to assess different strategies and concerns.

The SEC has yet to approve a spot Bitcoin ETF in the United States; however, in Canada, the financial product is already available. Three significant funds: Purpose Bitcoin, 3iQ CoinShares and CI Galaxy Bitcoin, have been approved by regulators in the country.