- December 21, 2023
- Posted by: [email protected]
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BlackRock, the largest asset manager globally, is making strides in its pursuit of a spot Bitcoin exchange-traded fund (ETF). In a promising development for the potential approval of such an ETF, BlackRock held its second meeting with the United States Securities and Exchange Commission (SEC) in December to discuss the proposed Bitcoin ETF.
BlackRock’s Head of Digital Assets, Robert Mitchnick, and members of the asset manager’s ETF team met with Nasdaq representatives, including the exchange’s VP and Chief Regulatory Officer, Joseph Cusick, on December 19. The focal point of the meeting was Nasdaq’s proposed rule change, aiming to list and trade shares of the BlackRock iShares Bitcoin Trust, paving the way for the trading of the spot Bitcoin ETF on the Nasdaq exchange.
The proposed rule change aligns with Nasdaq Rule 5711(d), outlining criteria for listing commodity-based trust shares, with specific compliance requirements for initial and ongoing listing. BlackRock’s persistence is evident in the consistent momentum gained through these discussions, showcasing a concerted effort to secure approval for the spot Bitcoin ETF in the United States.
Simultaneously, BlackRock made amendments to its S-1 application on the same day, designating the proposed iShares Bitcoin Trust ETF with the ticker IBIT. The ETF underwent a structural change to adopt a cash-only format, indicating that new shares can only be created through cash, not actual bitcoin.
As the world’s largest asset manager, BlackRock’s continued endeavors mark a significant milestone in the potential institutional adoption and mainstream acceptance of Bitcoin. The introduction of a spot Bitcoin ETF holds the promise of facilitating easier exposure to Bitcoin for both institutional and retail investors through conventional investment channels.
Analysts speculate that the approval of a spot Bitcoin ETF could trigger substantial capital inflows into the crypto market. This move would offer investment funds and traditional finance players regulated access to Bitcoin’s potential upside. While some experts suggest that capital may shift from existing Bitcoin investment products to ETFs, the overall sentiment is bullish for Bitcoin.
However, regulatory uncertainty looms as the SEC, despite recent engagements, has yet to approve a spot Bitcoin ETF due to concerns about crypto custody, manipulation risks, and investor protection. The current SEC leadership under Chairman Gary Gensler, showing increased openness to engaging with crypto ETF applicants, raises hopes for BlackRock’s spot Bitcoin ETF.
According to a K33 Research analysis, the window will open in January 2024, potentially allowing the SEC to accept multiple ETF applications at the same time. This impending deadline may expedite the review process, and with BlackRock’s influential resources, overcoming regulatory hurdles becomes increasingly plausible. Amid lingering uncertainties, the ongoing SEC meetings maintain the building momentum for a potential launch in 2024.
