Is Bitcoin Spot ETF Already a “Critical Priority” for BlackRock in January?
Bitwise and Hashdex, the issuers of a Bitcoin spot ETF, have recently released advertisements to warm up the market, as reported by Fox Business. The news outlet also quoted several traditional financial professionals who believe that many large fund management companies are increasingly confident that the SEC will approve a Bitcoin spot ETF in January next year.
Concerns over money laundering and market manipulation have led the SEC to require cash settlement for Bitcoin spot ETF applications, which is considered more complex and may result in investors losing important tax advantages.
Dave Weisberger, CEO of CoinRoutes, explained that the cash settlement model essentially shifts the burden of Bitcoin trading from broker-dealers like Robinhood and Fidelity to authorized participants like Morgan Stanley and Goldman Sachs. This reduces competition among issuers, and sales volume will depend on which issuer has better resources and trading strategies.
Sources familiar with the SEC’s meetings explained that the SEC’s concerns are related to Bitcoin being used for money laundering, market manipulation, and other illegal purposes.
According to Fox Business, getting a Bitcoin spot ETF approved has become a “key priority” for BlackRock. BlackRock CEO Larry Fink has previously described Bitcoin as an “international asset” and a “store of value” that can rival gold in the long run.
Fox Business reported that BlackRock has had five meetings with the SEC regarding a Bitcoin spot ETF, and the SEC has held about 24 meetings with other issuers, all indicating that institutions are working hard to launch ETFs next year.
Although the SEC has the ability to reject all issuer applications, industry insiders believe that the likelihood is low, as a U.S. court ruled in August that the SEC’s rejection of the GBTC transformation into a spot ETF was unreasonable, with the judge claiming that the SEC’s actions were “arbitrary and capricious.”
Fox Business noted that this ruling is seen as an important precedent by many ETF fund managers.
