BlackRock’s proposed spot bitcoin ETF has made a change to its mechanics that could potentially involve Wall Street banks in the cryptocurrency market. The change allows authorized participants (APs) to create new fund shares using cash instead of cryptocurrency. This is significant because regulated U.S. banks are unable to hold bitcoin themselves. By acting as APs, banks like JPMorgan and Goldman Sachs could play a key role in BlackRock’s ETF. The cash used by APs can be exchanged into bitcoin by an intermediary and stored by the ETF’s custody provider.
This development opens up opportunities for major banks with large balance sheets to participate in the cryptocurrency market, despite the restrictions they face in holding cryptocurrencies directly. However, whether these banks will choose to take advantage of this opportunity remains to be seen.
The change in mechanics was discussed in a meeting involving BlackRock, the Securities and Exchange Commission, and Nasdaq, as indicated by a memo filing related to the meeting.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | JPMorgan, Securities and Exchange Commission, BlackRock, Goldman Sachs, Nasdaq |
| Currencies | Bitcoin |
| Securities | None |
