The U.S. Securities and Exchange Commission (SEC) continued its review process of Bitcoin ETF applications and held two additional meetings with applicants Grayscale and BlackRock on December 19, 2023.
The meeting with Grayscale revolved around a proposed rule change, which, if approved, would allow NYSE Arca to list and trade shares of Grayscale’s upcoming spot Bitcoin ETF. Representatives from Grayscale, NYSE Arca and the law firm Davis Polk attended the meeting. Also present was Grayscale CEO Michael Sonnenshein.
The meeting marks Grayscale’s sixth meeting with the SEC and the fourth meeting in a month. The SEC’s list of grayscale dates also includes two meetings with Coinbase representatives, both of which took place in 2022.
In August 2023, Grayscale secured the right for the SEC to review its spot Bitcoin ETF application via a court decision, leading to a series of follow-up meetings. The company commented on the possibility of approval on its website on December 1.
BlackRock and SEC meet again
Another meeting concerned BlackRock and a proposed rule change that would allow Nasdaq to list and trade BlackRock’s iShares Bitcoin Trust. Several members of BlackRock and the Nasdaq Stock Market were present at the meeting.
The event marks BlackRock’s fifth meeting with the SEC. All five meetings took place over the course of a month, starting on November 20.
Unlike previous communications, today’s communication did not indicate which topics were discussed. Previous meetings between the SEC and BlackRock compared cash and in-kind redemption and creation models, the latter of which would enable certain Bitcoin transactions between participants. BlackRock updated its filing on December 18 to indicate that it would initially use a cash model.
Many experts believe that a spot Bitcoin ETF will be approved by January 10, 2024. This is partly due to a deadline that requires the SEC to rule on an application from Ark and 21Shares by that date. It is also partly due to recent meetings and changes to all applicants’ files. However, the SEC has not yet approved a spot Bitcoin ETF and approval is not certain.