BlackRock meets with SEC again, Coinbase's role to change to "primary execution agent"
Asset giant BlackRock meets with the SEC again to discuss Bitcoin spot ETF, marking BlackRock's fifth meeting and the latest development in the 24 meetings with ETF issuers. Bloomberg ETF analyst James Seyffart indicated that he is still watching the approval deadline of 1/8 to 1/10, previously estimating a 90% chance of approval.
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BlackRock Resubmits Filings, Changes Role of Coinbase
BlackRock and BlackRock submitted their latest filings to the Securities and Exchange Commission (SEC) on 12/18, changing the ETF ticker to "IBIT" and confirming the cash mode. Additionally, Coinbase's role has also been altered.
BlackRock Submits Bitcoin Spot ETF Filing to SEC with Ticker "IBIT"
BlackRock's S-1 amendment filed last night contained just 6 changes. The last one had 21. Highlights include moving to cash creations, dropping "primer broker" and "market makers" and a new ticker $IBIT. h/t to @akibablade doing god's work here.. https://t.co/XXnzlUjIw6 pic.twitter.com/HxVxs9kZpV
— Eric Balchunas (@EricBalchunas) December 19, 2023
According to an analysis by CryptoSlate, Coinbase's role has shifted from primary broker to primary executing agent, indicating that Coinbase's responsibilities for BlackRock's ETF may change. As a primary executing agent, Coinbase's main role is to execute buy and sell orders on behalf of the ETF, rather than providing the broader services typically associated with primary brokers.
Primary brokers usually offer a suite of services that allow 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.
An executing agent is a broker or dealer that executes buy or sell orders on behalf of clients. An executing broker within a primary broker will seek out the securities for purchase trades or seek out the buyers for sell trades. This intermediary service is crucial as large trades need to be executed for clients quickly and at a lower cost.
According to analysis by author akibablade, this move is in response to regulatory concerns, as not only do authorized participants and Bitcoin trading counterparties need to have compliance plans for sanctions and anti-money laundering laws, primary executing agents also need to maintain similar plans. This change underscores a greater focus on regulatory compliance and prevention of illicit activities.