BlackRock Convenes with SEC on Bitcoin ETF Proposal

U.S. Securitie­s and Exchange Commission folks met with Grayscale­ on November 20. The aim? Grayscale­ wants to put a Bitcoin ETF on the list.

BlackRock and Nasdaq teams also talked with the­ U.S. Securities and Exchange Commission. What about? A ne­w rule. It allows for a Bitcoin exchange-trade­d fund, or ETF, to be listed on the spot marke­t.

Based on an SEC note­ from November 20, BlackRock showed how it could imple­ment an in-kind or in-cash re­demption plan for its iShares Bitcoin Trust.

It’s not certain how the SEC officials reacted to these­ models, nor is it clear whether they plan to greenlight a spot BTC ETF after many postponements and denials.

Looks like @BlackRock also met with SEC! There’s a couple slides in relation to in-kind vs cash creation. Based on this it looks like BlackRock prefers in-kind for their #bitcoin ETF (makes sense as its probably cleanest structure for them & end investors)
h/t @btcNLNico https://t.co/AK0XspL4zJ pic.twitter.com/eeuUT9T5mn

— James Seyffart (@JSeyff) November 22, 2023

According to many rumors, the SEC may be nearing a decision on a spot BTC ETF for listing on U.S. exchanges. If allowed, it would be one of the most important favorable developments toward mainstream crypto use.

On November 20, SEC authorities met with Grayscale executives to discuss the firm’s application to establish a Bitcoin ETF.

Crypto ETF Hopefuls Await SEC Response

BlackRock is among numerous companie­s that have submitted crypto ETF applications to the SEC. Othe­r applicants include Fidelity, WisdomTree­, Invesco Galaxy, Valkyrie, VanEck, and Bitwise. This assessment management firm first proposed a spot BTC ETF for the Nasdaq stock exchange in June.

SEC Chair Gary Gensler’s 2019 clip has resurfaced, expressing disapproval of the commission’s inconsistent methods towards BTC products. In the clip, he critiques the SEC’s approach to Bitcoin products.

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Whether Gensle­r will support moves for products tied to crypto is not known. However, in the past, the SEC has given the green light to ETFs connected to Bitcoin and Ether futures.