BlackRock Adjusts Bitcoin ETF Plan, Includes Fiat Option

BlackRock has updated its application to launch a spot Bitcoin ETF in the U.S., introducing a significant change. Now, Wall Street banks can create shares using fiat currency, not just cryptocurrencies. To participate, these banks need to become authorized participants (APs).

This adjustment enables regulated U.S. banks, who are restricted from holding cryptocurrencies, to engage with BlackRock’s Bitcoin fund. They can exchange fiat shares for bitcoins via an intermediary, with the cryptocurrency stored by the ETF custodial provider.

The change likely follows BlackRock’s meetings with the SEC, led by Gary Gensler, on December 11, and previous discussions on November 20 and 28. The SEC’s decision on BlackRock’s application is due by January 15, with a final deadline of March 15. Other firms like Grayscale, Bitwise, VanEck, WisdomTree, Invesco Galaxy, Fidelity, and Hashdex are also awaiting the SEC’s decision.