Bitcoin ETF

Bitcoin

Read

<p class="is-style-lead">BlackRock, the world’s largest asset manager, has recently updated its application for a spot Bitcoin Exchange-Traded Fund (ETF) in a bid to address the U.S. Securities and Exchange Commission’s (SEC) concerns.</p>
<p>The <a href="https://www.sec.gov/comments/sr-nasdaq-2023-016/srnasdaq2023016-303319-781202.pdf" target="_blank" rel="noopener noreferrer nofollow">revisions</a>, detailed in the meeting minutes from a Nov. 28, 2023, discussion with the SEC’s Division of Trading and Markets, focus on mitigating issues related to market manipulation and broker-dealer registrations.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <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" target="_blank" rel="noopener noreferrer nofollow">@btcNLNico</a> here's full doc: <a href="https://t.co/sgOpY5D1jz" target="_blank" rel="noopener noreferrer nofollow">https://t.co/sgOpY5D1jz</a> <a href="https://t.co/863pWOX6w0" target="_blank" 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" target="_blank" rel="noopener noreferrer nofollow">November 29, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<h2 class="wp-block-heading" id="blackrock-s-updated-redemption-model">BlackRock’s updated redemption model</h2>
<p>In its revised proposal, BlackRock introduces a “prepaid model” within the existing in-kind redemption framework. This model requires the offshore market maker to prepay cash to the registered broker-dealer entity before the delivery of ETF shares in the redemption process.</p>
<p>This adjustment is designed to reduce the financial risks for the broker-dealer by separating it from the complexities of transferring Bitcoin to the market maker.</p>
<p>You might also like: <a href="https://crypto.news/bloomberg-blackrock-and-grayscale-meeting-with-sec-about-bitcoin-etf-issuance/" rel="noopener noreferrer nofollow"> Bloomberg: BlackRock and Grayscale meeting with SEC about Bitcoin ETF issuance </a></p>
<p>BlackRock maintains that the in-kind structure, even with these modifications, offers several advantages over a cash redemption method. These include lower transaction costs, streamlined operations, and a reduced risk of manipulation.</p>
<p>The asset manager contends that resolving issues with the balance sheet and broker-dealer registrations by modifying the timing and custody transfer processes could facilitate the Bitcoin ETF application’s compliance with regulatory standards and simultaneously improve incentives for shareholders.</p>
<p>Whether the updates provide sufficient guardrails to offset SEC unease regarding spot Bitcoin exposure for retail investors through an ETF remains unclear.</p>
<h2 class="wp-block-heading" id="race-for-regulatory-green-light">Race for regulatory green light</h2>
<p>The move to establish a spot Bitcoin ETF has gained traction recently, with financial giants like <a href="https://crypto.news/sec-accepts-bitcoin-etf-applications-from-blackrock-fidelity-galaxy-digital/" rel="noopener noreferrer nofollow">BlackRock and Fidelity</a> Investments submitting applications to the SEC.</p>
<p>However, the path to approval is fraught with challenges. The SEC has historically been hesitant to approve spot Bitcoin ETFs, citing worries over market manipulation and insufficient surveillance measures.</p>
<p><a href="https://crypto.news/sec-finds-spot-bitcoin-etf-applications-lacking-in-details/" rel="noopener noreferrer nofollow">Recent feedback</a> from the SEC on the latest applications has reiterated these concerns, particularly the lack of clarity on specific spot exchanges for surveillance-sharing agreements.</p>
<p>On Nov. 17, rumors <a href="https://twitter.com/EricBalchunas/status/1725559994995573086" target="_blank" rel="noopener noreferrer nofollow">circulated </a>on social media that suggested the SEC might have directed applicants to adopt cash-creation methods rather than transferring Bitcoin in-kind.</p>
<p>This unconfirmed shift could significantly change the responsibilities of issuers, requiring them to manage Bitcoin transactions more discreetly. If true, this new approach could enable broker-dealers to sidestep direct involvement in crypto transactions that fall beyond existing regulatory frameworks.</p>
<p>Read more: <a href="https://crypto.news/analyst-points-to-imminent-signs-of-spot-bitcoin-etf-approval/" rel="noopener noreferrer nofollow"> Analyst points to imminent signs of spot Bitcoin ETF approval </a></p>

BlackRock modifies proposed spot Bitcoin ETF to meet SEC requirements

Mục lục

crypto.news

Các bài viết khác được xuất bản trên 30 thg 11, 2023

Whale Sells $6.3M in Ethereum Prompting Questions on Taking Profits

Bitcoin’s Rally Soars as Spot ETF Anticipation Grows with the Entry of New Market Players

Chainlink's Rise: Analyzing Its Potential to Break into the Top 10 Cryptos of 2023

XRP Price Prediction as $1 Billion Trading Volume Comes In – Can XRP Reach $1 This Week?

Real-World Lending Project Florence Finance Suffers $1.45 Million Phishing Attack

KyberSwap hacker demands full control over the DEX at ‘fair valuation’

Tham gia bản tin miễn phí của chúng tôi để cập nhật tin tức về tiền điện tử hàng ngày!