BlackRock Updates Bitcoin ETF Filing, Makes Concessions to Regulators
BlackRock has made changes to its Bitcoin spot ETF filing that address concerns raised by federal regulators. The asset manager’s latest S-1 form states that new shares in the trust can only be created using cash, which is seen as less tax-efficient compared to Bitcoin-based creations. BlackRock’s decision follows similar pivots from other ETF applicants, including ARK Invest and 21Shares. These changes come after several meetings with SEC staff to discuss the share redemption model. While BlackRock proposed an alternative in-kind model, it was not immediately accepted. Bloomberg ETF analyst Eric Balchunas believes that the move is a positive sign for approval.
Bitcoin ETF Approvals Expected Soon
The cash creation model proposed by BlackRock requires Coinbase, its custodian, to hold actual BTC to back the share value. This makes it a more attractive option for investors compared to existing Bitcoin futures ETFs. The SEC’s recent court loss to Grayscale has prompted the agency to review relevant applications more closely. Balchunas predicts that multiple ETF applications will be approved simultaneously next month, although he doubts that the Grayscale Bitcoin Trust (GBTC) will be included in the initial wave of approvals. WisdomTree’s Bitcoin ETF filing still includes an option for in-kind redemptions.
Hot Take: Positive Progress for Bitcoin ETFs
The latest updates to BlackRock’s Bitcoin spot ETF filing indicate progress towards obtaining regulatory approval. By addressing concerns raised by federal regulators and pivoting to a cash creation model, BlackRock is increasing its chances of success. This change also aligns with similar moves made by other ETF applicants in recent times. The expected simultaneous approval of multiple ETF applications next month signifies a positive development for the crypto industry as it brings Bitcoin investment opportunities to a wider range of investors. While the approval process is ongoing, it is clear that the momentum for Bitcoin ETFs is growing, paving the way for further adoption and mainstream acceptance.
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