BlackRock Makes Changes to Bitcoin ETF Application
BlackRock has made structural changes to its application for a spot Bitcoin exchange-traded fund (ETF) in the U.S. The updated filing now allows Wall Street banks to create new shares in the fund using fiat currency, not just cryptocurrencies. To do this, they must become authorized participants (APs).
Opening the Door for Regulated Banks
These changes open the door for regulated U.S. banks that are unable to hold cryptocurrency to interact with the BlackRock Bitcoin fund as an AP. Fiat shares of the fund can be exchanged for bitcoins through an intermediary, with the cryptocurrency being stored by the ETF’s custodial provider.
Meetings with the SEC
The application was likely updated following meetings between BlackRock representatives and the Securities and Exchange Commission (SEC) led by Gary Gensler. This is the third meeting between the two parties, with previous meetings taking place on Nov. 20 and 28.
Decision Deadline
The SEC has until Jan. 15 to make a decision on BlackRock’s application, with a final deadline set for Mar. 15. Other financial firms such as Grayscale, Bitwise, VanEck, WisdomTree, Invesco Galaxy, Fidelity, and Hashdex are also awaiting the SEC’s decision.
Hot Take: Will BlackRock Succeed in Launching a Bitcoin ETF?
BlackRock’s revised application for a spot Bitcoin ETF in the U.S. shows its willingness to adapt and accommodate regulated banks that cannot hold cryptocurrency directly. By allowing Wall Street banks to create new shares based on fiat currency, it opens up opportunities for broader participation in the fund.
The meetings with the SEC indicate BlackRock’s commitment to working with regulators and addressing any concerns they may have. However, the ultimate decision lies with the SEC, who will determine if BlackRock’s application meets the necessary criteria.
With the Jan. 15 deadline approaching, the crypto community eagerly awaits the SEC’s decision. If approved, BlackRock’s Bitcoin ETF could pave the way for increased institutional adoption of cryptocurrencies.
By
By
By
By