Asset management giant BlackRock has taken a significant step forward in the crypto ETF space. Following a meeting with the SEC's cryptocurrency working group, BlackRock submitted revised filings for both its Ethereum ETF (ETHA) and Bitcoin ETF (IBIT), injecting fresh optimism into the crypto ETF landscape. Bloomberg ETF analysts predict SEC approval for in-kind creation/redemption crypto ETFs this year.
Key Discussions at BlackRock-SEC Crypto Working Group Meeting
On May 9, 2025, BlackRock met with the SEC's cryptocurrency working group to discuss crucial digital asset regulatory matters. The meeting covered several critical areas:
- BlackRock's digital asset product portfolio: Including updates on IBIT, ETHA, and the BlackRock USD Institutional Digital Liquidity Fund (BUIDL)
- Staking mechanisms: Exploring regulatory frameworks for staking-enabled exchange-traded products (ETPs)
- Asset tokenization: Advancing security tokenization within federal securities laws
- Crypto ETP approval standards: Specific criteria for crypto ETP approvals and potential transitional frameworks
- Crypto ETP options: Establishing appropriate position and exercise limits with liquidity thresholds
The meeting featured BlackRock's regulatory affairs, digital asset, and legal compliance experts.
Revised Filings for ETHA and IBIT ETFs
BlackRock's amended filings introduce several important updates:
ETHA (Ethereum ETF):
- Added language permitting in-kind creation/redemption upon SEC approval
- Current assets under management: $2.6 billion
IBIT (Bitcoin ETF):
- Incorporated new content regarding quantum computing risks
- Maintains option for in-kind Bitcoin creation/redemption
- Current assets under management: $62.9 billion
👉 Discover how in-kind ETFs could revolutionize crypto investing
Bloomberg analysts Eric Balchunas and James Seyffart anticipate SEC approval for in-kind mechanisms this year, potentially improving ETF efficiency and reducing costs - similar to established physical gold ETF models.
Why BlackRock's Move Matters
As the world's largest asset manager with $11.58 trillion in assets under management, BlackRock's actions carry substantial weight in financial markets:
- Market influence: BlackRock's entry into Bitcoin ETFs proved pivotal for SEC approvals
- Blockchain innovation: Planning tokenized shares for $150 billion money market funds via BNY Mellon
- Regulatory leadership: Active participation in shaping digital asset frameworks
👉 Explore BlackRock's growing crypto ecosystem
Frequently Asked Questions
Q: What's the difference between in-kind and cash ETF creation?
A: In-kind creation uses the actual asset (like Bitcoin), while cash creation uses equivalent fiat currency. In-kind typically offers better efficiency and tax advantages.
Q: When might SEC approve in-kind crypto ETFs?
A: Industry analysts project possible approval before year-end 2025 based on recent regulatory momentum.
Q: How does quantum computing affect Bitcoin ETFs?
A: Quantum computing could theoretically threaten current encryption standards, prompting issuers to address potential future risks in filings.
Q: Why is BlackRock's participation significant?
A: Their established regulatory relationships and market influence can accelerate approval processes and institutional adoption.
Q: What other crypto products is BlackRock developing?
A: Beyond ETHA and IBIT, BlackRock is exploring tokenized traditional assets through blockchain technology partnerships.
Risk Considerations
Cryptocurrency investments carry substantial risk, including potential total loss of principal due to extreme price volatility. Carefully evaluate your risk tolerance before investing.
This content represents general information only and does not constitute financial advice. Regulatory developments remain fluid in the digital asset space.