Bitcoin ETF Hurdles: Cash Redemptions, Hard Forks, Authorized Participant Disclosure Discussions With SEC
Portfolio Pulse from Murtuza Merchant
The SEC has been in discussions with firms seeking approval for a spot Bitcoin ETF, focusing on the redemption model, handling of hard forks, and disclosure of authorized participants. Grayscale Investments and BlackRock Inc. (NYSE:BLK) have been urged by the SEC to adopt a cash redemption model, with Grayscale amending its S-3 form to comply. The SEC also wants issuers to disclose authorized participants, with BlackRock naming Jane Street Capital and JPMorgan Securities LLC. Firms have reached a consensus on handling hard forks, with Grayscale stating its ETF would not receive tokens from hard forks or airdrops. Meetings with major exchanges have fueled speculation about the approval of a spot Bitcoin ETF.

January 04, 2024 | 10:26 pm
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BlackRock Inc. has been urged by the SEC to adopt a cash redemption model for its spot Bitcoin ETF and has disclosed its authorized participants, including Jane Street Capital and JPMorgan Securities LLC.
While the SEC's push for a cash redemption model and the disclosure of authorized participants are significant, BlackRock's compliance suggests a neutral short-term impact as the market may have already anticipated these regulatory discussions.
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