BlackRock proposes revised design for Bitcoin ETF in meeting with SEC

BlackRock presents revised in-kind model for Bitcoin ETF to SEC

JUST IN: 🇺🇸 BlackRock met with the SEC and shared a “revised in-kind model design” for its spot #Bitcoin ETF. pic.twitter.com/6Ozr4uV6mJ

— Bitcoin Magazine (@BitcoinMagazine) November 29, 2023

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BlackRock, the world’s largest asset manager, has met with the U.S. Securities and Exchange Commission (SEC) to discuss its plans for a Bitcoin exchange-traded fund (ETF). The company presented a “revised in-kind model design” for the ETF during the meeting.

The meeting between BlackRock and the SEC is a significant development in the growing interest in Bitcoin and cryptocurrencies. An ETF would allow investors to gain exposure to Bitcoin without directly owning the digital currency. It would also provide a regulated and accessible investment vehicle for institutional and retail investors.

BlackRock’s proposal for a Bitcoin ETF includes using an in-kind model, which means that the fund would hold Bitcoin directly rather than using futures contracts or other derivatives. This approach aims to address concerns about the potential manipulation of Bitcoin prices.

The SEC has been cautious about approving Bitcoin ETFs in the past, citing concerns about market manipulation and investor protection. Several previous proposals for Bitcoin ETFs have been rejected by the regulatory agency. However, there is growing optimism among industry experts that the SEC’s stance may be changing.

If approved, BlackRock’s Bitcoin ETF would join a growing list of cryptocurrency-related investment products. Currently, investors can access Bitcoin through regulated futures contracts offered by the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE). However, an ETF would provide a more convenient and accessible way for investors to participate in the cryptocurrency market.

BlackRock’s involvement in the cryptocurrency space is notable given its position as the world’s largest asset manager, with over $9 trillion in assets under management. The company’s entry into the Bitcoin market could attract significant institutional interest and further legitimize the cryptocurrency industry.

The news of BlackRock’s meeting with the SEC has already generated excitement among Bitcoin enthusiasts and investors. The price of Bitcoin saw a slight increase following the announcement, reaching a new all-time high.

However, it is important to note that the approval of a Bitcoin ETF is not guaranteed. The SEC will carefully review BlackRock’s proposal and consider various factors, including market manipulation concerns and investor protection measures. The regulatory agency has previously emphasized the need for robust market surveillance and sufficient liquidity in the underlying Bitcoin market.

While the outcome of BlackRock’s proposal is uncertain, the fact that the company is actively engaging with regulators is a positive sign for the cryptocurrency industry. It demonstrates the increasing acceptance and recognition of Bitcoin as a legitimate asset class..

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@BitcoinMagazine said JUST IN: 🇺🇸 BlackRock met with the SEC and shared a "revised in-kind model design" for its spot #Bitcoin ETF.

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