The U.S. Securities and Exchange Commission (SEC) has conducted multiple meetings with issuers of spot bitcoin exchange-traded funds (ETFs) to discuss their applications. BlackRock, Fidelity Investments, Franklin Templeton, and Grayscale Investments have all had recent meetings with the SEC regarding their spot bitcoin ETF filings. The SEC has been actively engaged in discussions with these issuers, with a focus on considerations such as the in-kind creation model and the potential classification of bitcoin as a security.


Key Points:

  • SEC Meetings with Spot Bitcoin ETF Issuers: The U.S. Securities and Exchange Commission (SEC) has held meetings with several issuers, including BlackRock, Fidelity Investments, Franklin Templeton, and Grayscale Investments, to discuss their spot bitcoin exchange-traded fund (ETF) applications.

  • Frequency of BlackRock's Meetings: BlackRock, the world's largest asset manager, has reportedly met with the SEC three times in recent weeks to discuss its spot bitcoin ETF application. The SEC has been actively engaging with various issuers as part of the approval process.

  • In-Kind Creation Model: One of the key issues discussed in the meetings concerns the use of the in-kind creation model versus the cash creation model for spot bitcoin ETFs. While the SEC generally favors the cash model, issuers like BlackRock advocate for the in-kind creation model.

  • Proposed In-Kind Model: BlackRock has proposed a revised in-kind creation model in an effort to address the SEC's concerns. The discussions involve considerations related to the creation and redemption mechanisms for spot bitcoin ETFs.

  • SEC Divisions Involved: Both the SEC Division of Trading & Markets and the Division of Corporate Finance have been present at these meetings. These divisions play a crucial role in deciding whether the ETF applications will be approved or denied.

  • Bitcoin Classification Concerns: The discussions have also covered concerns related to the potential classification of bitcoin as a security by the SEC. Addressing these concerns is part of the ongoing dialogue between issuers and the regulatory authority.

  • Approval Predictions: Bloomberg has predicted a 90% chance of the SEC approving spot bitcoin ETFs by January 10. There are currently 13 spot bitcoin ETF applications under consideration by the SEC.

The SEC's active engagement with issuers reflects ongoing efforts to evaluate and address various considerations associated with spot bitcoin ETF applications. Discussions cover topics such as the creation model, bitcoin classification, and other regulatory aspects. The outcome of these discussions will have significant implications for the approval of spot bitcoin ETFs in the U.S. market.


(Kevin Helms, Bitcoin News, 2023)