Experts Find a Possible Kill Switch in BlackRock’s Updated ETF
SEC closely works with Bitcoin ETF applicants, as experts discover and debate over a possible 'kill switch' in BlackRock's filing amid concerns of Bitcoin's security status.
The U.S. Securities and Exchange Commission (SEC) is working closely with Bitcoin ETF applicants, guiding them through final amendments before potential approval. A key focus that has grabbed people's attention is BlackRock’s updated application for a Bitcoin ETF, which has sparked discussions in the crypto community.
Experts are debating a possible 'kill switch' in Bitcoin ETFs, based on changes discovered in BlackRock’s filing. This amendment states that there would be severe consequences if Bitcoin is ever classified as a security in the U.S., this could impact its tradeability and market value.
Legal experts believe the SEC wants this language in BlackRock's filing, due to their concerns about Bitcoin's security classification. The amendment seems similar to the XRP and Ripple Labs case, where SEC action greatly affected XRP’s market value.
Caitlin Long, CEO of Custodia Bank, linked this update to a New Jersey bill defining virtual currencies as securities. Legal expert Samuel Andrew downplayed immediate concerns, suggesting it's just a usual legal caution. This language in the filing is seen as a compliance response to SEC requirements, but its implications as a 'kill switch' or just legal precaution remain unclear.
At the time of reporting, Bitcoin is trading at $43,728, as the industry anticipates the SEC's decisions on Bitcoin ETF applications.
