Core

Clash

Circuit

<h4><strong>BlackRock challenges SEC’s unequal treatment of crypto futures and spot ETFs, advocating for fair regulatory practices.</strong></h4>
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<h2 style="text-align: center;" id="strong-the-clash-of-titans-blackrock-challenges-sec-strong"><strong>The Clash of Titans: BlackRock Challenges SEC</strong></h2>
<p>The financial world is witnessing a clash of perspectives between BlackRock, the globe’s biggest asset manager, and the U.S. Securities and Exchange Commission (SEC). At the core of this conflict is the treatment of crypto futures and spot exchange-traded funds (ETFs) by regulatory authorities. BlackRock argues that the SEC’s harsher stance on crypto futures may stall the adoption of these financial tools​.</p>
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<h2 style="text-align: center;" id="strong-the-core-of-blackrock-s-argument-strong"><strong>The Core of BlackRock’s Argument</strong></h2>
<p>BlackRock’s contention hinges on the SEC’s differential treatment of spot-crypto and crypto-futures ETF applications. The firm believes there’s no valid reason for this distinction, especially since they’ve previously launched a bitcoin trust and are now proposing a spot Ether (ETH) ETF, named the “<a href="https://walletinvestor.com/magazinadmin/blackrock-registers-ishares-ethereum-trust-in-delaware-stirring-etf-speculation/" rel="noopener noreferrer nofollow">iShares Ethereum Trust</a>“​.</p>
<p><strong><em>„Given that the Commission has approved ETFs that offer exposure to ETH futures, which themselves are priced based on the underlying spot ETH market, the Sponsor believes that the Commission must also approve ETPs that offer exposure to spot ETH.” &nbsp;BlackRock</em></strong></p>
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<blockquote class="twitter-tweet">
 <p dir="ltr" lang="en">I took Scott’s advice and read Blackrock’s argument for approval of a spot ETH ETF.</p>
 <p>It’s very compelling.</p>
 <p>The argument flows from Grayscale’s DC Circuit victory: the SEC can’t lawfully approve ETH futures ETFs but not a spot ETH ETF. I agree.</p>
 <p>Read here: <a href="https://t.co/7mwYNWDHRo" rel="noopener noreferrer nofollow">https://t.co/7mwYNWDHRo</a> <a href="https://t.co/fAgVBnOBZZ" rel="noopener noreferrer nofollow">https://t.co/fAgVBnOBZZ</a></p>
 <p>— Jake Chervinsky (@jchervinsky) <a href="https://twitter.com/jchervinsky/status/1723029479612653963?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 10, 2023</a></p>
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<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
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<h2 style="text-align: center;" id="strong-sec-s-stance-and-blackrock-s-counter-strong"><strong>SEC’s Stance and BlackRock’s Counter</strong></h2>
<p>The SEC has approved several crypto futures ETFs, reasoning that they fall under the 1940 Act, which supposedly offers better regulation and consumer protections compared to the 1933 Act covering spot-crypto ETFs. However, BlackRock <a href="https://cointelegraph.com/news/blackrock-argues-sec-has-no-grounds-to-treat-crypto-futures-and-spot-etfs-differently" rel="noopener noreferrer nofollow">challenges this</a>, arguing the 1940 Act’s restrictions don’t directly address the underlying assets of the ETFs, be it ETH futures or spot ETH. Thus, they see the SEC’s preference as irrelevant in this case​​.</p>
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<h2 style="text-align: center;" id="strong-blackrock-s-confidence-in-approval-strong"><strong>BlackRock’s Confidence in Approval</strong></h2>
<p>Amidst this debate, BlackRock remains optimistic about the approval of their spot bitcoin ETF by January 2024. They anticipate this approval could infuse $200 billion into bitcoin markets, potentially raising its value significantly. Also, analysts predict a high chance of the SEC approving a spot crypto ETF soon, possibly before January 10 next year​​.</p>
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<h2 style="text-align: center;" id="strong-the-bigger-picture-strong"><strong>The Bigger Picture</strong></h2>
<p>This disagreement highlights a broader issue: the evolving nature of financial markets and the need for regulatory frameworks to adapt. BlackRock’s challenge to the SEC is more than just about specific ETFs; it’s about how emerging financial instruments like cryptocurrencies are treated under existing laws. Their argument that the SEC’s current approach lacks logical basis could signify a shift in how crypto markets are regulated and perceived​​.</p>
<p>In conclusion, this unfolding scenario between BlackRock and the SEC is pivotal. It underscores the tension between traditional regulatory approaches and the dynamic world of crypto finance. The outcome could shape the future of cryptocurrency investments and their integration into mainstream financial systems.</p>
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Crypto ETFs: BlackRock Challenges SEC in Regulatory Dispute

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