BlackRock's proposed Bitcoin spot ETF mechanism will allow banks to create new fund shares in cash
According to a memorandum document related to the meeting between the U.S. Securities and Exchange Commission, BlackRock, and Nasdaq on November 28th, BlackRock's proposed Bitcoin spot ETF mechanism will allow Authorized Participants (APs) to create new fund shares using cash instead of just cryptocurrencies.
Since regulated U.S. banks themselves cannot hold Bitcoin, this arrangement would make companies like JPMorgan Chase or Goldman Sachs become APs for BlackRock's ETF. The cash used by APs in this process can be exchanged into Bitcoin through intermediaries and then held in custody by the ETF's custodian provider.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Nvidia (NVDA.US) discloses SpaceX (SPCX.US) holdings for the first time! The value of shares held is nearly $21 billions, with holdings in Intel (INTC.US) reaching $30 billions.
According to a 13F regulatory filing submitted by Nvidia to the U.S. Securities and Exchange Commission (SEC) on Friday, as of June 30, the company held approximately 122.8 million shares of SpaceX, with a position value close to 21 billions USD.
Crypto prices
More
