BlackRock Adopts Cash-Only Redemptions for Bitcoin ETF
Asset manager BlackRock is making the final adjustments to its spot Bitcoin exchange-traded fund (ETF) application. The latest move is to agree to ‘cash creations’ for fund redemptions—in line with what US financial regulators are pushing.
BlackRock Bitcoin ETF Cash Only
BlackRock has decided to accept cash and Bitcoin to create new shares and vice versa, instead of allowing BTC in exchange for ETF shares. This decision aligns with the Securities and Exchange Commission’s (SEC) preference for cash redemptions only, rejecting any in-kind model for now.
Bitcoin ETF Latest
The SEC has pressured issuers to amend their applications to cash creations. Wisdomtree’s latest filing amendment still allows for in-kind creation and redemption, while Ark Invest and 21Shares have also amended their filings to cash creation. However, the SEC remains firm on requiring cash redemptions only.
Hot Take: BlackRock’s Adoption of Cash-Only Redemptions Signals Progress Towards a Bitcoin ETF Approval
The fact that BlackRock has embraced cash-only redemptions for its Bitcoin ETF application is a positive development. While it may disappoint proponents of in-kind redemptions, this move shows that major ETF issuers are willing to comply with the SEC’s requirements. It indicates progress towards gaining regulatory approval for a Bitcoin ETF.
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