BlackRock Inches Closer to Bitcoin ETF
BlackRock, the world’s largest asset manager, has updated its S-1 filing with the U.S. Securities and Exchange Commission (SEC).
The amended document, presented on Monday, details new aspects of the creation and redemption mechanisms for the proposed fund, which is identified by the ticker IBIT.
Alex DovbnyaThis development follows recent discussions between BlackRock and the regulatory agency.
BlackRock's strategic shift
BlackRock's transition to a cash-only approach marks a pivotal change in its ETF strategy.
Eric Balchunas, a senior ETF analyst, explained that the firm would now accept cash to create new ETF shares, rather than direct Bitcoin deposits.
This strategy aligns with the SEC’s preference for cash transactions in ETFs, as it potentially mitigates some risks associated with direct cryptocurrency handling.
The move signifies BlackRock’s efforts to streamline its operations before the holiday season.
Other amended proposals
The shift in BlackRock's approach is not an isolated event in the cryptocurrency investment landscape.
ARK Invest and 21Shares have also updated their filings for a spot Bitcoin ETF.
Similarly, Wisdomtree has filed an amended proposal for their application, which is a broader industry trend.
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