The approval of ETF is one of the necessary conditions to start the violent bull market in 2024.
BlackRock, the world’s largest asset manager, has made changes to its spot Bitcoin exchange-traded fund (ETF) application, a move aimed at boosting participation from Wall Street banks. The revised application allows banking giants such as JPMorgan Chase and Goldman Sachs to issue new shares in the fund using cash rather than cryptocurrencies.
This new redemption model, called “advance,” enables authorized participants (APs) at major banks to bypass restrictions that prevent them from holding Bitcoin or cryptocurrencies directly on their balance sheets. APs can participate in the fund by transferring cash to a broker-dealer who then converts it into Bitcoin. In BlackRock’s case, Coinbase Custody serves as the custody provider for the ETF.
Six BlackRock members and three Nasdaq members submitted revised models to the U.S. Securities and Exchange Commission (SEC) at a Nov. 28 meeting aimed at addressing issues such as market manipulation and enhancing investor protections. BlackRock believes the new structure offers superior resistance to market manipulation, a key factor that previously led the SEC to reject applications for a spot Bitcoin ETF.
BlackRock recently held its third meeting with the SEC on December 11, chaired by Chairman Gary Gensler. The last meeting on November 28 was a follow-up to the initial meeting on November 20, where an original physical exchange model was proposed.
The SEC is expected to make a decision on BlackRock’s filing by January 15, 2024.
