SEC in Advanced Talks with Asset Managers for Spot Bitcoin ETF: BlackRock in the Spotlight

blockchain.news:

The launch of a spot Bitcoin exchange-traded fund (ETF) is a topic of active debate between the U.S. Securities and Exchange Commission (SEC) and a number of asset managers, notably the massive investment firm BlackRock. This action may be a crucial turning point in the acceptance of cryptocurrencies in traditional financial markets.

Chair Gary Gensler's office representatives attended a recent round of discussions conducted by the SEC with asset managers who were considering the creation of a spot Bitcoin ETF in the United States. Representatives from BlackRock met with the SEC on December 14th to discuss a proposed rule change that would permit trading of the cryptocurrency investment vehicle on major exchanges. According to reports, BlackRock and the SEC are meeting for the third time to discuss the ETF application.

In recent weeks, asset managers and the SEC have had more intense talks. In addition to BlackRock, the SEC has spoken with representatives from Grayscale, Franklin Templeton, and Fidelity, among other significant companies. A variety of issues have been discussed in these talks, such as investor protection and market manipulation. However, special attention has been paid to the processes involved in creating currency, redeeming it, and obtaining spot Bitcoin from actual exchanges.

In the financial community, the approval of a spot Bitcoin ETF is much awaited. Several major asset managers, including Grayscale, Fidelity, Invesco, and WisdomTree, want to introduce their spot Bitcoin exchange-traded funds (ETFs). The ability to trade Bitcoin on Wall Street's key exchanges would enable the cryptocurrency to reach a wider range of investors and greatly increase its credibility and acceptability in traditional