BlackRock and Nasdaq in Talks with SEC Over Potential Bitcoin Spot ETF Listing
Summary:
BlackRock and Nasdaq have discussed with the U.S. Securities and Exchange Commission (SEC) about a rule that might permit the listing of a Bitcoin spot exchange-traded fund (ETF). BlackRock, alongside other firms like Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck and Bitwise, is waiting for the SEC's decision on their spot crypto ETF applications. The potential approval of a Bitcoin spot ETF listing on U.S. exchanges could mark a significant stride towards mainstream crypto adoption.
Representatives of BlackRock and Nasdaq had a discussion with the U.S. Securities and Exchange Commission (SEC) on the potential rule that may authorize the listing of a Bitcoin spot exchange-traded fund (ETF). An SEC memo dated November 20 states that BlackRock offered an explanation on how the company may utilize an in-cash or in-kind redemption mechanism for its iShares Bitcoin Trust. The SEC's reaction to the proposed ideas remains uncertain, as does its decision on approving a Bitcoin spot ETF after multiple delays and denials.
In the crypto world, it seems that BlackRock has also held conversations with the SEC! According to some slides, there's a clear preference for in-kind over cash. The preference probably stems from the fact that it provides a cleaner structure for both BlackRock and the final investors.
Rumors have been circulating that the SEC may be close to deciding on a Bitcoin spot ETF for listing on U.S. exchanges. If approved, it would mark a major step towards bringing cryptocurrencies into the mainstream. BlackRock's involvement in this scenario isn't solitary; meetings with the SEC also involved representatives from Grayscale who are aiming to list a Bitcoin ETF.
BlackRock is among many companies, along with Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck and Bitwise, waiting on the SEC's decision regarding their spot crypto ETF applications. BlackRock's initial application to list a Bitcoin spot ETF on the Nasdaq occurred in June.
A previously recorded video of SEC chair Gary Gensler from 2019 showed him questioning the "inconsistent" treatment of Bitcoin spot products by the commission. It remains to be seen whether the SEC chair will endorse efforts toward cryptocurrency investment vehicles, although the commission has previously approved ETFs connected to Bitcoin and Ether futures.
Published At
11/22/2023 5:42:30 PM
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