Crypto Summit: SEC Talks & ETF Prospects

Representatives from the esteemed financial powerhouses BlackRock and Nasdaq recently convened with the United States Securities and Exchange Commission to engage in a thoughtful dialogue concerning the proposed regulatory framework facilitating the inclusion of a spot Bitcoin (BTC) exchange-traded fund (ETF). The meeting, which unfolded against the backdrop of the dynamic financial landscape, saw in-depth conversations surrounding the potential listing of BTC tickers, currently marked at $37,442.

Within the corridors of the SEC, a memorandum dated November 20 shed light on the proceedings, with BlackRock delivering a comprehensive presentation outlining the intricate details of how the company could potentially implement either an in-kind or in-cash redemption model for its iShares Bitcoin Trust. The SEC's response to these two proposed models hangs in the balance, creating an air of anticipation regarding the fate of the spot BTC ETF approval, a narrative punctuated by a history of both delays and rejections.

Looks like @BlackRock also met with SEC! There’s a couple slides in relation to in-kind vs cash creation. Based on this it looks like BlackRock prefers in-kind for their #bitcoin ETF (makes sense as its probably cleanest structure for them & end investors)
h/t @btcNLNico https://t.co/AK0XspL4zJ pic.twitter.com/eeuUT9T5mn

— James Seyffart (@JSeyff) November 22, 2023

As speculation swirls, reports have surfaced suggesting that the SEC might be on the brink of a pivotal decision regarding the much-anticipated spot BTC ETF, an outcome that could usher in a notable stride towards the integration of cryptocurrencies into the fabric of mainstream finance. Simultaneously, on November 20, SEC officials engaged in discussions with representatives from Grayscale, adding another layer of intrigue to the unfolding narrative as the firm sought approval for a Bitcoin ETF listing.

It's noteworthy that BlackRock is just one among an array of entities with spot crypto ETF applications patiently awaiting feedback within the intricate channels of the SEC pipeline. Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck, and Bitwise form part of this lineup, with BlackRock initiating the application process for a spot BTC ETF listing on the Nasdaq stock exchange as far back as June.

In a captivating twist, a resurfaced video from 2019 featuring SEC Chair Gary Gensler emerged in October, wherein he candidly critiqued the commission's "inconsistent" approach to spot BTC products. The enigmatic stance of the SEC chair on aligning with the efforts for crypto-linked investment vehicles remains shrouded in uncertainty. However, it's worth noting that the commission has, in the past, given its nod to ETFs intricately tied to the futures of both Bitcoin and Ether (ETH), the latter currently valued at $2,067.

Read more about: Bitcoin's Resurgence: Navigating Legal Waters and ETF Aspirations