“BlackRock Holds Another Meeting with SEC, Coinbase’s Role to be Altered as ‘Principal Executive Agent'”
Asset giant BlackRock has once again met with the U.S. Securities and Exchange Commission (SEC) to discuss the matter of a Bitcoin spot ETF. This marks BlackRock’s fifth meeting and the latest development in the 24 meetings held by ETF issuers. James Seyffart, an ETF analyst at Bloomberg, stated that he remains focused on the approval deadline between January 8th and 10th, and previously believed there was a 90% chance of approval.
BlackRock has resubmitted the documents, and there has been a change in Coinbase’s role.
On December 18th, BlackRock submitted the latest documents to the SEC, changing the ETF ticker symbol to “IBIT” and confirming the cash mode. Additionally, there has been a change in Coinbase’s role.
According to CryptoSlate’s analysis, Coinbase’s role has shifted from a primary broker to a primary executing agent, indicating that Coinbase’s responsibilities towards BlackRock’s ETF may change. As a primary executing agent, Coinbase’s main role is to execute buy and sell orders on behalf of the ETF, rather than providing the broader services typically associated with a primary broker.
A primary broker typically offers a suite of services that enable large institutions, traders, and hedge funds to implement their trading strategies at a certain cost. These services often include cash management, securities lending, trade clearing, and settlement.
On the other hand, an executing agent is a broker or dealer who acts as an intermediary to execute buy or sell orders on behalf of clients. Within a primary broker, executing brokers seek securities for purchase trades or buyers for sell trades. This intermediary service is crucial as large trades need to be completed for clients quickly and at lower costs.
According to analysis by author akibablade, this change is in response to regulatory concerns. Not only do authorized participants and Bitcoin trading counterparties need to develop compliance plans for sanctions and anti-money laundering laws, but primary executing agents also need to maintain similar plans. This change highlights a greater focus on regulatory compliance and prevention of illicit activities.
BlackRock
Coinbase
This article is based on the analysis by akibablade.
Further reading: BlackRock submits Bitcoin spot ETF with ticker symbol “IBIT”
Updated Bitcoin spot ETF: SEC holds intensive meetings with BlackRock, among others, and remains optimistic about the approval deadline of January 10th.
