According to the updated file, Wall Street banks are now only cryptocurrency It can create new shares on a fiat basis, not units. To do this, they need to obtain authorized participant (AP) status.
Changes for regulated US banks that cannot hold cryptocurrencies ETFIt paves the way for . They will be able to interact with the BlackRock Bitcoin fund as an AP.
The fund’s fiat shares can be exchanged for Bitcoins through an intermediary. In this case, the cryptocurrency will be stored in the ETF custody provider.
Presumably, the filing was updated after BlackRock representatives met with the Securities and Exchange Commission (SEC), chaired by Gary Gensler, on December 11. This is BlackRock’s third meeting in recent weeks, with previous meetings with the SEC on November 20 and 28.
Damn, the SEC is busier than Santa’s elves. BlackRock’s third meeting with them yesterday is the most notable IMO as everyone is waiting to see if they can convince SEC to allow in-kind creations in the first run of approvals. https://t.co/r2jqgpg87m
NEWS CONTINUES BELOW— Eric Balchunas (@EricBalchunas) December 12, 2023
The SEC has until January 15 to rule on BlackRock’s application, with the deadline set for March 15. Grayscale, Bitwise, VanEck, WisdomTree, Invesco Galaxy, Fidelity and Hashdex are among other financial companies awaiting the SEC’s decision.