The U.S. Securities and Exchange Commission (SEC) met again with BlackRock and Grayscale on the 20th to discuss the application for a Bitcoin spot ETF. It is worth noting that while BlackRock has yielded to the SEC’s insistence and adopted a cash redemption model, Grayscale is still trying to persuade the SEC to accept a physical redemption model during the meeting.
(Background:
BlackRock yielded to the SEC and adopted the “cash redemption” model, updating the Bitcoin spot ETF code IBIT.)
The SEC is currently reviewing more than 10 applications for Bitcoin spot ETFs, including Grayscale, which won a lawsuit against the SEC, forcing the SEC to re-evaluate the conversion of its Bitcoin Trust Fund GBTC into a Bitcoin spot ETF application, as well as applications from BlackRock, Fidelity, and other asset management giants.
Currently, two Bloomberg senior ETF analysts, as well as Mike Novogratz, the founder of cryptocurrency financial services giant Galaxy Digital, predict that the SEC will approve the first Bitcoin spot ETF by January 10th of next year. There are also increasing signs that the SEC is likely to approve it soon.
According to the latest memorandum released by the SEC, the SEC held meetings again with BlackRock and Grayscale on the 19th to discuss the application for a Bitcoin spot ETF. This was the 5th meeting with BlackRock and the 4th meeting with Grayscale. This brings the total number of meetings between the SEC and issuers regarding spot ETFs to 25.
Bloomberg ETF analyst Eric Balchunas wrote on X platform today (21st): It is worth noting that unlike BlackRock and Ark/21 Shares, which modified their documents this week and yielded to the SEC’s insistence on the cash subscription/redemption model in order to increase the likelihood of priority approval, Grayscale has not given up on persuading the SEC to accept the physical model during the meeting.
Bloomberg ETF analyst James Seyffart tweeted today that Grayscale called for Bitcoin spot ETFs to offer both physical and cash subscriptions and redemptions, and that the physical model is more efficient for subscriptions and redemptions, which is more beneficial to investors. Therefore, Grayscale believes that a spot ETF that offers physical and cash redemptions will be in the best interest of investors.
To alleviate the SEC’s concerns, Grayscale also proposed that only authorized participants (APs) be allowed to subscribe to and redeem Bitcoin ETF shares, and these APs must be registered with the Financial Industry Regulatory Authority (FINRA) in the United States and be able to settle transactions on their own.
Seyffart also stated that he fully supports Grayscale, BlackRock, and all other issuers who have promoted or are currently promoting the physical model because it is a simpler and more efficient way to operate ETFs.
Eric Balchunas also mentioned the SEC’s consideration of adopting the cash model for Bitcoin spot ETFs:
Yesterday, Seyffart stated that they have not changed their prediction that the probability of the SEC approving spot ETFs before January 10th is as high as 90%. They are still paying attention to the window period from January 8th to 10th.
[Image]
Related Reports:
SEC Chair Gary Gensler: Will reconsider applications by referencing the “successful outcome” of the Grayscale case
Bitcoin spot ETF frontline: SEC releases details of discussions with BlackRock and Grayscale: physical redemption, cash redemption…
Wall Street giant VanEck predicts “Bitcoin will reach a new all-time high within a year”! All BTC spot ETF applications will be approved together
Bitcoin spot ETF expert: BlackRock’s revised “physical redemption model” may meet SEC requirements
Tags:
SEC
Physical Redemption
Bitcoin Spot ETF
Grayscale
United States
BlackRock