EddieJayonCrypto
22 Dec 23
The race for the spot Bitcoin exchange-traded fund (ETF) is intensifying as issuers make final adjustments before the holiday season. BlackRock's latest amendment to include a third-party buyer and seller of Bitcoin for its fund may face opposition from the Securities and Exchange Commission (SEC). ...
The race for the spot Bitcoin exchange-traded fund (ETF) is intensifying as issuers make final adjustments before the holiday season. BlackRock's latest amendment to include a third-party buyer and seller of Bitcoin for its fund may face opposition from the Securities and Exchange Commission (SEC). The SEC is advocating for the ‘cash create’ method of ETF share creation and redemption over ‘in-kind’, and the use of Coinbase as a third-party broker for BlackRock's fund is likely to be met with regulatory scrutiny. Despite these challenges, there is an optimistic outlook for batch approvals for ETFs in early January. BlackRock has appointed a ‘Prime Execution Agent’ for its Bitcoin buying and selling, but has not specified who the Prime Execution Agent would be.
A ‘Prime Execution Agent’ is essentially a third-party broker that will buy and sell BTC on BlackRock’s behalf. The SEC is pushing for the ‘cash create’ method of ETF share creation and redemption over ‘in-kind,’ and the use of Coinbase as a third-party broker for BlackRock's fund is likely to be met with regulatory scrutiny. Bitwise was the first to change to the cash-only model. Despite these challenges, there is an optimistic outlook for batch approvals for ETFs in early January.
Disclaimer:This is not financial advice. Please do your own research before investing in any asset.