The way U.S. financial institutions interact with Bitcoin may be on the brink of a major shift, according to a leading ETF expert. Nate Geraci, founder of the ETF Store, shared with The Thinking Crypto podcast host Tony Edward that if the SEC approves BlackRock’s iShares Bitcoin Trust (IBIT) proposal for “in-kind” Bitcoin redemptions, it would be a “game changer,” as the move would not only provide much-needed regulatory clarity, but also open the door for financial institutions to confidently hold and transact in Bitcoin, Geraci said.
The big story here is that if this is approved, it would essentially be the SEC giving the okay for market makers and authorized participants to hold and transact in Bitcoin. Right now, there’s no regulatory clarity for market makers. If this gets approved, that clarity would likely come along with it. I think that’s the real game changer. And this also ties into the SEC rescinding SAB 121, which will allow financial institutions with market-making businesses to hold Bitcoin. So, I think these two developments are closely tied together.
Hmmm…….. i still don’t trust it! Bitcoin should be self-custodied and nothing else. Strange that the government is now so interested in the different ways BTC can be handled.