The U.S. Securities and Exchange Commission (SEC) is reviewing a proposal from BlackRock that would have changed its spot Bitcoin exchange-traded fund (ETF) from its current cash-based model by allowing for in-kind redemptions.
According to a filing published today, the SEC has opened a 21-day comment period following the proposal’s publication in the Federal Register, at which time the agency will decide whether to approve, reject or further review the proposed amendment.
Nasdaq, representing BlackRock, filed an amended rule filing last month seeking approval for in-kind redemptions and creation of the iShares Bitcoin Trust, as outlined in its Form 19b-4 filing.
The debate over Bitcoin ETF redemption methods dates back to the SEC’s initial approval process for spot Bitcoin ETFs. At the time, the SEC favored a cash model that required issuers like BlackRock to sell Bitcoin and distribute cash to investors rather than transferring the underlying asset directly.
The SEC eventually approved multiple spot Bitcoin ETFs, including BlackRock’s in January 2024. The latest proposed change would not affect individual investors but would apply to authorized participants responsible for the creation and use of ETF shares, according to Bloomberg Intelligence ETF analyst James Seyffart.
If approved, the change could offer institutional investors greater flexibility and increase efficiency in Bitcoin ETF trading.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/big-moment-for-blackrocks-bitcoin-spot-etf-comes-step-by-step-sec-issues-statement/