Representatives from BlackRock and Nasdaq held discussions with the U.S. Securities and Exchange Commission (SEC) regarding proposed regulations that would allow Exchange Traded Funds (ETFs) for spot Bitcoin listings.
In a memo dated November 20 obtained from the SEC, BlackRock presented a plan outlining the utilization of an in-kind or cash redemption model for its iShares Bitcoin Trust. However, details on the SEC officials' response to these proposed models or their inclination towards approving a spot BTC ETF following previous delays and rejections remain uncertain. Reports indicate that the SEC might be nearing a decision on permitting a spot BTC ETF to be listed on the U.S. market, a development seen as a significant stride toward wider cryptocurrency acceptance. Moreover, SEC representatives also held discussions with Grayscale representatives on November 20 concerning the company's application to introduce a Bitcoin ETF.
BlackRock is among several companies in the SEC pipeline seeking approval for spot crypto ETFs, including Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck, and Bitwise. The asset management firm initially submitted an application to list a spot BTC ETF on the Nasdaq stock exchange back in June.
The reemergence of a 2019 video featuring SEC Chairman Gary Gensler in October garnered attention, where he criticized the commission's "inconsistent" approach to spot BTC products. The stance of the SEC chairman on supporting endeavors to establish cryptocurrency investment vehicles remains unclear. However, the commission has previously sanctioned ETFs related to Bitcoin and Ethereum futures.
