BlackRock, Fidelity, And Spot Bitcoin ETF Applicants Converge For SEC Meeting, What’s At Stake?

Mila July 6, 2023

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BlackRock, Fidelity Investments, and several other applicants for spot Bitcoin ETFs are scheduled to hold a meeting with the United States Securities and Exchange Commission (SEC). This meeting follows the refiling of their applications with the SEC, which now include information about their surveillance-sharing partners and other necessary details.

The meeting is not out of the ordinary as the SEC staff regularly engages in meetings with ETF applicants following official filings to assess approval or denial and to clarify their position.

According to Eric Balchunas, a Bloomberg ETF analyst who shared this information on Twitter, the meeting is essential for discussing the potential of spot Bitcoin ETFs and addressing any required amendments to the existing rules. He also states that it is important to note that while this information comes from reliable sources, it has not been fully confirmed.

Nevertheless, the SEC staff regularly engages in meetings with ETF applicants following official filings to assess approval or denial and to clarify their position. Although under the leadership of Chair Gary Gensler, the SEC has consistently denied the approval of a spot Bitcoin ETF while approving similar ETFs.

However, the Volatility Shares 2x Bitcoin Strategy ETF, which is the first leveraged Bitcoin futures ETF, was just authorized by the SEC. Given this, it is believed that the approval of a spot Bitcoin ETF may hold particular significance for the cryptocurrency industry.

BlackRock CEO Stresses The Democratization And Cost Benefits Of Bitcoin ETFs

During a recent interview, Larry Fink, the CEO of BlackRock, emphasized their intent to democratize cryptocurrency and reduce costs through their ETF filing.

“Bitcoin holds the status of a global asset, independent of any specific currency,” claims Fink.

Fink expressed confidence in the approval of their latest ETF application by highlighting the firm’s positive track record of collaboration with regulators in the past.

While acknowledging his initial skepticism towards cryptocurrencies due to their association with illicit activities, Fink admitted to a change of perspective. In addition to that, BlackRock is actively seeking regulatory collaboration to secure approval for their initial spot Bitcoin ETF application.

Bloomberg analysts concurred with Fink’s perspective, asserting that a Bitcoin ETF could significantly decrease trading costs, potentially as low as 0.01%, across major cryptocurrency exchanges. This cost reduction demonstrates the promising potential of a Bitcoin ETF when compared to traditional crypto exchanges.

Featured image from Twitter, chart from TradingView.com

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