Representatives from financial giants BlackRock and the Nasdaq recently engaged with the United States Securities and Exchange Commission (SEC) in discussions surrounding the potential approval of a spot Bitcoin exchange-traded fund (ETF). A memo from the SEC on November 20 revealed that BlackRock presented a comprehensive overview of its proposed iShares Bitcoin Trust, outlining two possible redemption models: in-kind or in-cash.
The SEC’s response to these proposed models remains unclear, leaving the crypto community on edge as they await a decision on whether the regulatory body will finally greenlight a spot Bitcoin ETF. This development comes after numerous delays and rejections in the past, heightening the anticipation surrounding the potential approval.
Reports indicate that the SEC could be nearing a decision on allowing a spot Bitcoin ETF for listing on U.S. markets. If approved, this move could mark a significant positive trend toward mainstream adoption of cryptocurrencies. In addition to the meeting with BlackRock, SEC officials also conferred with representatives from Grayscale on November 20, as the firm seeks approval for listing its own Bitcoin ETF.
BlackRock is just one of several financial entities with pending spot crypto ETF applications, underscoring the growing interest in providing investors with regulated exposure to the crypto market. Other firms awaiting responses from the SEC include Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck, and Bitwise. Notably, BlackRock initially submitted its application for a spot Bitcoin ETF in June, targeting listing on the Nasdaq stock exchange.
The discussions with the SEC come amid a broader conversation about regulatory approaches to crypto products. A video from 2019 featuring SEC Chair Gary Gensler, criticizing the commission’s “inconsistent” stance on spot Bitcoin products, resurfaced in October. Gensler’s current position on crypto-linked investment vehicles remains uncertain, although the SEC has previously approved ETFs tied to Bitcoin and Ether futures, signaling some level of acceptance within the regulatory framework.