IMPORTANT POINTS:
- For the third time in two months, BlackRock met with members of the SEC to expedite the approval of a Bitcoin spot ETF.
- The investment company has made all the modifications required by the regulatory body but has not yet achieved final acceptance.
- Bitcoin investors are eager for this to happen as they understand that with a BTC fund in the market, adoption would grow by leaps and bounds.
BlackRock has long asked the SEC to approve a spot Bitcoin ETF. However, the agency has not yet done so citing several inconsistencies.
December 11 was the third meeting that the investment company had with the regulatory body. The first was on November 20 and the second, was a week later.
In those meetings, the SEC required BlackRock to rewrite some points and modify certain characteristics of the ETF.
It is important to clarify that this type of company needs these elements to be approved to have exposure to Bitcoin since the SEC does not allow banks or financial firms to possess crypto assets.
In parallel, clients of these banks will also be able to indirectly invest in BTC through an exchange-traded fund, allowing extra profits for BlackRock, Goldman Sachs, JPMorgan, etc.
The Bitcoin ETF model proposed by BlackRock
The mechanism will be as follows: Those clients who are authorized by the company will transfer fiat money to a broker. That broker will buy Bitcoin in cash.
It would later be stored at the ETF’s custody provider, which would be Coinbase Custody, as a provider to BlackRock. This reduces client risk and, according to BlackRock, the market is not manipulated.
