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<p>The post <a href="https://coinpedia.org/news/blackrock-and-sec-continue-discussions-over-bitcoin-etf-structure/" rel="noopener noreferrer nofollow">BlackRock and SEC Continue Discussions Over Bitcoin ETF Structure</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>In a recent development, BlackRock, the world’s largest asset manager, has once again met with the Securities and Exchange Commission’s (SEC) Trading &amp; Markets division to discuss the structure of its proposed spot Bitcoin Exchange-Traded Fund (ETF), as reported by Bloomberg ETF analyst Eric Balchunas.</p>
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   <p lang="en" dir="ltr">Looks like BlackRock met with the SEC's Trading &amp; Markets division again yesterday and gave presented them with a "revised" in-kind model design based on Staff's comments at their 11/20 meeting.. h/t <a href="https://twitter.com/btcNLNico?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@btcNLNico</a> here's full doc: <a href="https://t.co/sgOpY5D1jz" rel="noopener noreferrer nofollow">https://t.co/sgOpY5D1jz</a> <a href="https://t.co/863pWOX6w0" rel="noopener noreferrer nofollow">pic.twitter.com/863pWOX6w0</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1729921877328503083?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 29, 2023</a>
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<p>The initial meeting between BlackRock and the SEC a week ago centered around the choice between using an “in-kind” redemption model or a cash model for the ETF. The SEC had recommended that applicants for spot Bitcoin ETFs use cash creation, but BlackRock expressed a preference for the in-kind redemption approach. In this model, BlackRock would exchange Bitcoin held by the ETF for shares instead of a cash redemption plan where redemptions would be made in cash.</p>
<h2 class="wp-block-heading" id="h-details-of-the-second-meeting"><strong>Details of the Second Meeting</strong></h2>
<p>According to Balchunas, the second meeting focused on a proposed regulation modification by NASDAQ Stock Market LLC for listing and trading shares of the iShares Bitcoin Trust. BlackRock presented a revised in-kind model design for redemptions during this meeting. The firm included slides describing the redemption models, indicating a strong preference for the in-kind strategy.</p>
<h2 class="wp-block-heading" id="h-sec-s-concerns-and-blackrock-s-stance"><strong>SEC’s Concerns and BlackRock’s Stance</strong></h2>
<p>The SEC has shown apprehension regarding BlackRock’s preference for an in-kind redemption scheme, particularly concerning its impact on the balance sheets and risks to Market Maker’s broker/dealer company in the United States (MM-BD). Despite this, BlackRock is standing firm on its in-kind creation approach, as reported by Balchunas. Conversely, the SEC has suggested that BlackRock should opt for cash creations to avoid complications associated with unregistered brokers.</p>
<h2 class="wp-block-heading" id="h-what-lies-ahead"><strong>What Lies Ahead</strong></h2>
<p>The ongoing discussions between BlackRock and the SEC, despite their differences, signal that the approval process for the ETF might be advancing. If BlackRock manages to secure regulatory approval for its spot bitcoin ETF, it could significantly impact the market. Analysts predict that the approval could lead to a surge in institutional capital, potentially driving Bitcoin’s price to a new all-time high of $141,000 within the first year and attracting billions of dollars in investment.</p>
<p>As the dialogue continues, the investment and regulatory communities eagerly await the outcome, which could mark a significant milestone in integrating cryptocurrency into mainstream financial products.</p>

BlackRock and SEC Continue Discussions Over Bitcoin ETF Structure

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