News Report Technology
December 19, 2023

BlackRock Updates Filing for Bitcoin ETF, Embraces Cash Redemptions

In Brief

BlackRock revised its filing for a spot Bitcoin ETF embracing cash redemption system, to boost the likelihood of approval from SEC.

BlackRock Updates Filing for Bitcoin ETF, Embracing Cash Redemptions

Multinational investment company BlackRock revised its proposed filing for a spot Bitcoin exchange-traded fund (ETF) and incorporated the option for cash redemptions. The adjustment is seen as a strategic move to enhance the likelihood of obtaining approval from the US Securities and Exchange Commission (SEC).

The S-1 amendments, filed on Dec. 18, relate to the cash creation and redemption model for proposed spot Bitcoin ETFs. BlackRock has chosen to embrace the cash redemption system, deviating from in-kind redemptions, which involve non-monetary payments such as Bitcoin.

“The Trust issues and redeems baskets on a continuous basis. 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,”

said BlackRock’s iShares Bitcoin Trust ETF representative.

The SEC’s “cash-only” requirement implies that authorized participants can only acquire more ETF shares by contributing the appropriate amount of cash. Previously, BlackRock intended to redeem baskets exclusively in Bitcoin or in-kind.

Crypto Market Rebounds in Anticipation of SEC Decision 

A surge in submissions for spot Bitcoin and Ethereum ETFs, involving well-established companies in traditional finance, has revived the crypto market this year following a sequence of setbacks in 2022.

Currently, several companies, including BlackRock, Fidelity, VanEck, Valkyrie and Franklin Templeton, are competing for the approval of a spot Bitcoin ETF.

Despite the SEC‘s consistent denial of all applications, citing concerns about potential fraud, ongoing discussions with representatives from applicant firms have centered around addressing technical intricacies in their fund proposals. There also remains optimism among market participants for an ETF approval early next year.

In the recent development, VanEck’s chief executive officer suggested that approval for all spot Bitcoin ETF applications is anticipated to occur on the same day, while Bitcoin is expected to  reach new record heights within the next 12 months.

BlackRock’s amended filing for a spot Bitcoin ETF highlights its adaptive approach to regulatory nuances, providing the company with a strategic edge to enhance the prospects of approval with the SEC.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

Hot Stories
Join Our Newsletter.
Latest News

From Ripple to The Big Green DAO: How Cryptocurrency Projects Contribute to Charity

Let's explore initiatives harnessing the potential of digital currencies for charitable causes.

Know More

AlphaFold 3, Med-Gemini, and others: The Way AI Transforms Healthcare in 2024

AI manifests in various ways in healthcare, from uncovering new genetic correlations to empowering robotic surgical systems ...

Know More
Read More
Read more
Malta Embraces Crypto Future As Gate.MT CEO Highlights Next Wave Of Blockchain Evolution
News Report Technology
Malta Embraces Crypto Future As Gate.MT CEO Highlights Next Wave Of Blockchain Evolution
November 1, 2024
Binance Blockchain Week 2024 Ignites Dubai with Bold Visions for Web3, AI, and the Future of Crypto Innovation
Opinion Business Lifestyle Markets Technology
Binance Blockchain Week 2024 Ignites Dubai with Bold Visions for Web3, AI, and the Future of Crypto Innovation
November 1, 2024
Hedera Introduces Bonzo Finance Liquidity Layer To Catalyze DeFi Growth On Its Network
News Report Technology
Hedera Introduces Bonzo Finance Liquidity Layer To Catalyze DeFi Growth On Its Network
November 1, 2024
Layer 1 Blockchains or Layer 2 Solutions The Intense Debate Over the Future of Blockchain Scalability
Opinion Software Technology
Layer 1 Blockchains or Layer 2 Solutions The Intense Debate Over the Future of Blockchain Scalability
November 1, 2024