Representatives from BlackRock and Nasdaq met with the United States Securities and Exchange Commission (SEC) to discuss the proposed rule allowing the listing of a spot Bitcoin exchange-traded fund (ETF). In a meeting on Nov. 20, BlackRock presented two models, in-kind and in-cash redemption, for its iShares Bitcoin Trust. The SEC is reportedly considering various spot Bitcoin ETF applications, with a potential approval seen as a significant step toward mainstream crypto adoption. Grayscale representatives also met with SEC officials on the same day as part of the asset manager's bid to list a Bitcoin ETF.


In a noteworthy development, representatives from BlackRock and Nasdaq engaged in discussions with officials from the United States Securities and Exchange Commission (SEC) regarding the proposed rule for listing a spot Bitcoin exchange-traded fund (ETF). The meeting, which took place on Nov. 20, saw BlackRock present potential models for its iShares Bitcoin Trust, including in-kind and in-cash redemption options. The SEC's response to these proposed models and its stance on approving a spot Bitcoin ETF remain unclear, with the regulatory decision being highly anticipated given its potential impact on mainstream crypto adoption.


The SEC's consideration of spot Bitcoin ETF applications has been a subject of ongoing interest, with various firms awaiting regulatory responses. The potential approval of a spot Bitcoin ETF is widely regarded as a significant positive development for the crypto industry. Alongside BlackRock, other companies, including Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck, and Bitwise, have spot crypto ETF applications in the SEC pipeline.


The meeting between BlackRock and Nasdaq representatives and SEC officials underscores the collaborative efforts to address regulatory considerations surrounding crypto-linked investment vehicles. The resurfacing of a video featuring SEC Chair Gary Gensler from 2019, criticizing the commission's "inconsistent" approach to spotting Bitcoin products, adds complexity to the regulatory landscape. Gensler's stance on crypto-linked investment vehicles remains uncertain, but the SEC has previously approved ETFs tied to Bitcoin and Ethereum futures.


The Nov. 20 discussions also included a meeting between SEC officials and representatives from Grayscale as the asset manager sought approval for listing a Bitcoin ETF. The convergence of key industry players and regulatory authorities signals a pivotal moment in the ongoing efforts to establish a regulatory framework for crypto-based financial instruments. The outcome of these discussions could have a profound impact on the broader adoption and integration of cryptocurrencies in traditional financial markets.


(TURNER WRIGHT, COINTELEGRAPH, 2023)