Bitcoin Spot ETFs: Key Outcomes from SEC-BlackRock Meet

Last Updated November 24th 2023
3 Min Read

Key Takeaways -

  • The recent meeting between BlackRock and the SEC signals a potential shift in the regulatory landscape for Bitcoin-related financial products.
  • A central discussion point was the choice between 'cash creates' and 'in-kind' models for Bitcoin ETFs, emphasizing differences in investor advantages and regulatory compliance.
  • Following the meeting, the cryptocurrency market showed a positive response, with Bitcoin's price exceeding $37,000, indicating market confidence in upcoming regulatory changes.

In a recent and significant development within the dynamic world of cryptocurrency, BlackRock, a globally recognized asset management firm, engaged in a pivotal meeting with the Securities Exchange and Commission (SEC). This meeting holds considerable importance as it could be a key indicator of the SEC's future approach toward approving innovative Bitcoin-related financial products, a development eagerly anticipated by market watchers.


The cryptocurrency community is keenly observing the outcomes of this crucial meeting between BlackRock and the SEC. This article aims to delve into the nuances of their discussion, unravel the ongoing debate over ETF (Exchange-Traded Fund) models, and assess the potential impact these developments could have on the broader Bitcoin market.

Insights From the BlackRock-SEC Meeting

In a move that underscores the growing interest in cryptocurrency investment vehicles, BlackRock and the SEC's division of trading and markets convened to discuss several critical issues. This meeting's timing was particularly noteworthy as it coincided with Grayscale's own discussions with the SEC, suggesting a heightened focus on the future of Bitcoin ETFs. A primary point of discussion was the potential for NASDAQ to list the iShares Bitcoin Trust, an innovative Spot Bitcoin ETF proposed by BlackRock.

The ETF Model Debate

During the meeting, it became apparent that the SEC has a leaning towards the 'cash creates' model for ETFs, a preference that carries significant weight in the context of regulatory approvals. In contrast, BlackRock demonstrated a preference for an 'in-kind' model. They believe this model offers more advantages, benefiting both the firm and its investors. However, the SEC's preference suggests that BlackRock might need to reconsider its approach to avoid potential delays in getting the ETF approved.

Importance of the ETF Model Choice

The decision between adopting an 'in-kind' or a 'cash creation' model is far from a mere technical choice. It has far-reaching implications, influencing everything from investor preferences to the overarching theme of regulatory compliance. While the in-kind model is generally more favored by investors due to its perceived benefits in terms of spread and taxation, the SEC's inclination towards the cash creation model is driven by regulatory considerations. This preference underscores the SEC's commitment to ensuring that these new financial products adhere to strict compliance standards.

Market Response to the Meeting

Market Response to the Meeting

The cryptocurrency market reacted with noticeable positivity to the news of this high-profile meeting. Bitcoin's price experienced a significant surge, crossing the notable $37,000 threshold. This bullish response from the market can be interpreted as a sign of optimism, reflecting the anticipation and potential impact of these regulatory changes on the cryptocurrency landscape.

Read More: