Posted 12/12/2023, 7:02:30 PM
BlackRock Proposes New Bitcoin ETF Model to SEC, Shifting Settlement Risk from Banks to Crypto Market Makers
- BlackRock is shifting risk from banks to crypto market makers in its Bitcoin ETF proposal to address SEC concerns
- The new model starts with market makers sending cash to kick off settlement before banks get involved
- It aims to offer "superior resistance to market manipulation" and "simplicity and harmonization"
- Making redemption faster and less risky may attract more institutional dollars
- The changes come after a late November meeting between BlackRock, Nasdaq, and the SEC