World's biggest asset management company BlackRock, Inc. (NYSE:BLK) on Thursday filed for a spot Bitcoin (CRYPTO: BTC) exchanged-traded fund on Thursday, creating a ripple in the cryptocurrency space.

The ETF would be named as iShares Bitcoin Trust. Its assets would consist primarily of Bitcoin held by Coinbase Global, Inc. (NASDAQ:COIN), which would serve as the custodian on behalf of trust.

What Happened: Gold bug Peter Schiff, a crypto skeptic and an opponent of Bitcoin and its kind, on Saturday suggested BlackRock could have an ulterior motive in filing for the spot Bitcoin ETF.

The fact that the investment company applied despite knowing that previous applications have been rejected suggests that BlackRock could be trying to profit from the news-induced upside, the economist suggested.

Schiff said that BlackRock may have bought the dip in Bitcoin and then applied for the EFF, knowing that the news would push up the apex crypto. This would allow the firm to sell the crypto for a large gain, he added.

Why did @BlackRock file for a #BitcoinđŸ“· ETF when they know all previous applications have been rejected? Maybe #BlackRock bought Bitcoin on the last drop, then applied for an ETF knowing the news would result in a rally, allowing BlackRock to sell its Bitcoin for a large gain.

— Peter Schiff (@PeterSchiff) June 17, 2023

Why It's Important: Schiff's comment about the previous rejections of applications is not far from the truth. The SEC, in mid-2022, rejected Grayscale Investment's application to convert its flagship spot Grayscale Bitcoin Trust (OTC:GBTC) into an ETF. Grayscale then filed a suit against the regulator, stating that the latter was acting arbitrarily by rejecting spot Bitcoin ETFs even as it was approving Bitcoin futures.

In late 2022, Wisdomtree Bitcoin Trust was also rejected by the SEC, which cited inadequate investor protection.

BlackRock's move comes at a time when the SEC is on a warpath with crypto exchanges such as Coinbase and Binance. The regulator has filed lawsuits against these exchanges for trading in unregistered securities — a development that sent several altcoins into a tailspin.

At last check, Bitcoin traded at $26,455.95, up 2.45%, according to Benzinga Pro data. The apex crypto has gained about 2% over the past week.

Read Next: Mike Novogratz Says BlackRock’s Filing For Bitcoin ETF Is ‘The Best Thing That Could Happen’

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