Main takeout
- BLACKROCK met with the Crypto Task Force of the SEC and discussed the ETF workflow and in -kind restraint structure.
- The company used a April 1 meeting to deepen discussions on the repayment of spots, opening the way for SEC approval for ETF submission in January.
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BLACKROCK and US Securities and Exchange Commission discussed the potential change of encryption exchange trading products workflows this week, including the transition to the spot repayment of a digital asset fund.
The Closed-Door meeting held on Monday, April 1, with the newly formed encryption task force of the SEC, focused on the structure and mechanics of Crypto ETF.
BLACKROCK’s team is understood that the company has deeply discussed the potential of spot redemption, a model already submitted by Bitcoin ETF.
Participants approved through in -kind repayment will directly exchange ETF stocks for basic assets such as Bitcoin instead of cash, enable improvement of efficiency and reduction in costs. The meeting indicates that such repayment can obtain regulatory traction.
As the dialogue continues to increase, the btc exposure of Blackrock continues to increase, with more than 574,000 BTCs in the ETHET ETF with more than 1.1 million ETHs in ETHET ETF.
Blackrock’s regulatory, product and ETF team’s senior officers participated in a discussion to support the field system by applying the existing ETP workflow.
Since the SEC approved the SPOT BITCOIN ETF in January 2024, the SEC has mandated cash repayment models by citing risks of custody and regulations.
As a result of submitting NASDAQ’s BLACKROCK on -site repayment models, such a structure will sort more closely the existing product -based ETF and password ETF.
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