BlackRock has changed how its voice Bitcoin change traded fund (ETF) will work, doubtlessly opening the doors for important U.S. banks to participate within the crypto industry.

In a memo filed on Nov. 28, BlackRock disclosed a brand original in-sort redemption “prepay” model that can allow banks to act as authorized participants (APs) for the ETF. Truly, this mechanism would allow them to avoid the restrictions that don’t allow them to take care of crypto on their very acquire steadiness sheets.

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Below the model, the APs may perhaps perhaps well change money for Bitcoin by an middleman and be held by the ETF custody supplier, which in BlackRock’s case is Coinbase Custody.

The original model turned into once proposed in a gathering with the U.S. Securities and Replace Commission (SEC), which turned into once attended by six executives from BlackRock and three executives from the SEC.

Executives from BlackRock stated that the model addresses the SEC workers’s disaster with the in-sort redemption model, and provides advantages including the passing on of execution dangers to crypto market makers as in opposition to traders, and superior resistance to market manipulation.

BlackRock, Constancy, Grayscale Funding and Franklin Templeton beget met with the SEC over the leisure couple of weeks to issue about their voice Bitcoin ETF filings, in keeping with memos reviewed by Bloomberg ETF analyst James Seyffart.

The total meetings had been with the securities regulator’s Division of Procuring and selling and Markets, and Division of Corporate Finance, which SEC Chair Gary Gensler describes because the divisions that protect swish and efficient markets and make optimistic that traders beget enough arena subject data to rating told choices.