Blackrock Holds Fourth Meeting with SEC
This week, several companies have engaged in discussions with the U.S. Securities and Exchange Commission (SEC) regarding their spot bitcoin exchange-traded fund (ETF) applications. One notable company is Blackrock, the world’s largest asset manager, which recently had its fourth meeting with the SEC to discuss its spot bitcoin ETF proposal. The meeting memorandum, filed with the SEC, reveals that Blackrock met with the Office of the Chair to discuss the proposed rule change for the Ishares Bitcoin Trust. Once approved, the ETF will trade under the ticker IBTC.
Other Companies Meeting with SEC
Blackrock is not the only company meeting with the SEC’s Office of the Chair. Hashdex, another company seeking approval for a spot bitcoin ETF, also had a meeting in November. Additionally, the SEC staff recently held meetings with Fidelity, Franklin Templeton, and Grayscale Investments, among others. One topic of discussion is the use of cash creation method versus in-kind creation method for the ETFs. While the SEC favors the cash creation method, some companies, including Blackrock, prefer the in-kind method and have proposed a revised version of it to address the SEC’s concerns.
New Look at Spot Bitcoin ETF Filings
SEC Chairman Gary Gensler announced that the securities regulator is “taking a new look” at spot bitcoin ETF filings following recent court rulings. Gensler emphasized that the SEC acts according to its authorities and how the courts interpret them. Currently, there are 13 spot bitcoin ETF applications pending at the SEC. According to Bloomberg’s analysts, there is a 90% chance of the SEC approving a spot bitcoin ETF by Jan. 10.
Hot Take: SEC’s Reevaluation May Pave the Way for Spot Bitcoin ETFs
The SEC’s recent reevaluation of spot bitcoin ETF filings signals a potential shift in regulatory stance. By engaging in discussions with a number of companies, including Blackrock, the SEC seems more open to considering the establishment of spot bitcoin ETFs. The preference for the in-kind creation method by some companies, despite the SEC’s favor towards cash creation, highlights the ongoing negotiations between regulators and applicants. If the SEC approves a spot bitcoin ETF, it would mark a significant milestone for the cryptocurrency industry and could potentially attract more institutional investors to the market.
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