BlackRock’s Proposed Spot BTC ETF And SEC’s Latest Moves

It seems that the moves made by BlackRock for the approval of their Bitcoin ETF are going forward. Check out the latest details about what has been going on in this direction.

BlackRock has proposed a spot bitcoin ETF, which has been given the ticker IBIT as per the amended S-1 filing on Monday with the Securities and Exchange Commission.

The updated filing includes new language about the creation and redemption mechanism to be used by the fund, which has been the topic of recent meetings between BlackRock and SEC officials.

The latest update appears to suggest a cash redemption model, which the SEC is said to be favoring, but it also allows for an “in-kind” process, subject to approval from regulators.

“The Trust issues and redeems Baskets on a continuous basis,” according to the filing. “These transactions will take place in exchange for cash. Subject to the In-Kind Regulatory Approval, these transactions may also take place in exchange for bitcoin.”

“BlackRock has gone cash only,” Bloomberg Intelligence analyst Eric Balchunas wrote on X. “That’s basically a wrap. Debate over. In-kind will have to wait. It’s all about getting ducks in row bf holidays. Good sign.”

BlackRock has taken an important decision that will affect the crypto space as well. The financial giant decides to go cash only just ahead of Christmas.

BlackRock has gone cash only. That’s basically a wrap. Debate over. In-kind will have to wait. It’s all about getting ducks in row bf holidays. Good sign. https://t.co/vgocs1aIwS

— Eric Balchunas (@EricBalchunas) December 19, 2023

“Yes, take in cash and then btc to create new shares and vice versa. Basically can’t hand in btc in exchange for etf shares like in most ETFs,” the notes continued.

We’re about to get out of 2023 and begin a new year. Stay tuned for more news, and we’ll make sure to keep you posted.