Blackrock Tweaks BTC ETF To Boost Bank Involvement
BlackRock Inc. has submitted a revised proposal to the U.S. Securities and Exchange Commission (SEC) for its iShares spot Bitcoin exchange-traded fund (ETF).
The revised proposal introduces a mechanism allowing U.S.-regulated banks to engage in the cryptocurrency market without directly handling digital assets.
Under this structure, banks can participate as “authorized participants” (APs), leveraging broker-dealers to handle the conversion of fiat currency to Bitcoin.
This approach navigates regulatory constraints that traditionally prevent banks from holding cryptocurrencies on their balance sheets.
The updated ETF model is praised for its robustness against market manipulation, lower transaction costs, and reduced risk of operational issues. It also shifts risks from investors to market makers, enhancing safety for individual participants.
The structure eliminates the need for issuers to pre-fund or finance sell trades, further streamlining the investment process.
(With inputs from Shikha Singh)
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