Asset giant BlackRock has once again met with the U.S. Securities and Exchange Commission (SEC) to discuss the matter of a Bitcoin spot ETF. This is BlackRock’s fifth meeting and the latest development in the 24 meetings held by ETF issuers. Bloomberg ETF analyst James Seyffart stated that he is still focused on the approval deadline of January 8th to 10th, and previously believed there was a 90% chance of approval.
BlackRock has resubmitted its documents and there have been changes to the role of Coinbase.
(BlackRock submits Bitcoin spot ETF under the code name “IBIT” to the SEC)
According to CryptoSlate’s analysis, Coinbase’s role has changed from a primary broker to a primary execution agent, indicating that Coinbase’s responsibilities for the BlackRock ETF may shift. As a primary execution agent, Coinbase’s main role is to handle buy and sell orders on behalf of the ETF, rather than providing the broader services typically associated with a primary broker.
Primary brokers usually offer a suite of services that enable large institutions, traders, and hedge funds to implement their trading strategies at a certain cost. These services typically include cash management, securities lending, trade clearing, and settlement.
On the other hand, an execution agent acts as a broker or dealer that handles buy or sell orders on behalf of clients. The execution brokers within a primary broker will seek securities for purchase transactions or buyers for sale transactions. This intermediary service is crucial as large trades need to be completed for clients quickly and at lower costs.
According to analysis by author akibablade, this change is in response to regulatory issues, as not only do authorized participants and Bitcoin trading counterparties need to develop compliance plans for sanctions and anti-money laundering laws, but primary execution agents also need to maintain similar plans. This change highlights a greater focus on regulatory compliance and prevention of illicit activities.
BlackRock
Coinbase
IBIT
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Further reading:
BlackRock submits Bitcoin spot ETF under the code name “IBIT”
Bitcoin spot ETF update: SEC holds intensive meetings with BlackRock and others, remains optimistic about the January 10th approval deadline.