- BlackRock recently met with the SEC to discuss a potential spot bitcoin ETF, outlining two models for an “iShares Bitcoin Trust” using in-kind or in-cash redemption structures.
- The potential SEC approval of a spot bitcoin ETF has generated significant interest across the crypto industry, with many firms like Fidelity and WisdomTree also applying.
- The SEC has yet to approve a spot bitcoin ETF but a decision appears imminent based on meetings with BlackRock, which could mark a major milestone for bitcoin adoption.
According to an SEC memo from November 20, BlackRock provided a presentation outlining two potential models for its proposed “iShares Bitcoin Trust.” The company suggested using either an in-kind or in-cash redemption structure. It is unclear how SEC officials responded to the proposals or if they intend to approve a spot bitcoin ETF after previous delays and rejections.
The potential for SEC approval of a spot bitcoin ETF has generated significant interest across the crypto industry. Many other firms also have ETF applications pending with the SEC, including Fidelity, WisdomTree, Invesco, Galaxy, Valkyrie, VanEck, and Bitwise. BlackRock first applied for a bitcoin ETF listing on the Nasdaq stock exchange in June.
In the past, the SEC has approved bitcoin futures ETFs but not any based on spot bitcoin. A video clip of SEC Chair Gary Gensler from 2019 recently resurfaced in which he criticized the agency’s inconsistent stance toward spot bitcoin products. It remains uncertain whether Gensler will support spot bitcoin ETF efforts under his leadership.
The SEC has yet to approve a spot Bitcoin ETF, but a decision appears imminent based on recent meetings with BlackRock and other applicants. The launch of such an ETF would mark a major milestone for mainstream Bitcoin adoption in the United States.