The largest asset manager in the world, Blackrock, met with the U.S. Securities and Exchange Commission (SEC) once more to talk about its application for a spot bitcoin exchange-traded fund (ETF). For its spot bitcoin ETF, the company has put out a “revised in-kind” model that it hopes will “resolve” the SEC’s objections.
According to reports, the regulator has stated that it favours spot bitcoin ETFs that employ the cash creation technique.
And just for fun let's enjoy this ponzi joke a little more even though backed by the largest asset manager in the world – $10+trillion USD , Blackrock. pic.twitter.com/3lW8sZ6tNL
— TJ Ty Price (@Ty_Price_) November 30, 2023
Updated In-Kind Model for Bitcoin ETF Spot
The largest asset manager in the world, Blackrock, met again this week with the Division of Trading and Markets of the U.S. Securities and Exchange Commission (SEC) to discuss its application for a spot bitcoin exchange-traded fund (ETF).
King 👑on its way.
BlackRock continues working with the 🇺🇸 SEC to push the spot #Bitcoin ETF approval over the finish line.
BlackRock has revised its "In-Kind" model after the SEC made it clear they prefer a "cash creates" model for the ETF.
We seem to be nearing a resolution pic.twitter.com/kOz9SMBA8j
— Updated (@updated4U) November 29, 2023
The two parties discussed “Nasdaq Stock Market LLC’s proposed rule change to list and trade shares of the iShares Bitcoin Trust,” according to a memo dated Nov. 28 that was made public on the SEC website.
“This model seems to solve the staff’s in-kind concern, addressing the crucial aspect that makes the cash model preferable to the in-kind model otherwise.” The company clarified:
In the context of Bitcoin, it maintains the numerous important advantages that the in-kind model offers investors over some cash alternatives.
updated, in-kind approach for Bitcoin ETF that is spot on. Reference: Blackrock
The new in-kind approach has many advantages, including lower transaction costs, execution risks taken on by crypto market makers rather than investors, increased protection against market manipulation, no requirement for issuers to fund or pre-fund sell trades, and fewer operational event risks.
Yesterday, BlackRock held discussions with the SEC's Trading & Markets division concerning their Bitcoin ETF application. In response to earlier feedback from the SEC, BlackRock introduced an updated "in-kind" model, as reported by Bloomberg's Eric Balchunas. This development… pic.twitter.com/gcqkaL1VGf
— William Stickevers (@wstickevers) November 30, 2023
“simplicity and harmonization across the ecosystem given significantly lower variance on how in-kind models can be executed vs. cash models” and fewer operational event risks.
Blackrock discussed the issue with the SEC after this report was released, continuing to support the use of the in-kind creation methodology.
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