BlackRock is making it easier for Wall Street banks like Goldman Sachs to participate in a spot Bitcoin ETF.

Asset management titan black stone I corrected the spot Bitcoin We apply ETF (Exchange Traded Fund) to make it easier for Wall Street banks to participate.

The revised ETF version allows new shares to be created using cash rather than cryptocurrency. Under the new agreement, banks can also act as authorized participants in ETFs.

This would allow large banks like JPMorgan and Goldman Sachs to avoid restrictions that currently prevent them from holding Bitcoin and other cryptocurrencies directly on their balance sheets.

A new model was introduced to the U.S. Securities and Exchange Commission (SEC) at a meeting held on November 28, attended by six BlackRock members and three Nasdaq members.

In the modified model, authorized participants transfer cash to a broker-dealer.

These broker-dealers convert cash into: Bitcoin Coinbase Custody prior to depositing with the ETF’s custodian service provider designated by BlackRock.

This model would also shift risk away from authorized participants and place it more in the hands of market makers.

BlackRock said the new model offers “unparalleled resistance to market manipulation.”

This covers one of the following: Securities and Exchange Commission (SEC) Major concerns led the regulator to repeatedly reject all previous spot Bitcoin ETF applications.

BlackRock added that the new ETF structure will enhance investor protection while lowering transaction costs and increasing “simplicity and harmony” across the broader Bitcoin ETF ecosystem.

BlackRock’s Spot Bitcoin ETF Could Open Trillion-Dollar Floodgates

The potential approval of this new model could significantly increase the influx of investment in new products.

This will allow $1 trillion Wall Street banks to participate without having direct exposure to cryptocurrencies.

Regulations currently prohibit these trillion-dollar banks from adding Bitcoin and other cryptocurrencies to their balance sheets.

Anyone who might want to move out of the way, leave the runway clear.

— Eric Balchunas (@EricBalchunas) November 28, 2023

The SEC must make a decision on BlackRock’s application by January 15, with a final deadline set for March 15. However, ETF analysts predict that the SEC may reveal decisions on several pending applications between January 5 and 10.

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