New Ticker Revealed for BlackRock’s Bitcoin Trust
BlackRock has announced a new ticker for its iShares Bitcoin Trust: IBIT. The change was revealed in an amendment to the asset manager’s S-1 application filed with the SEC. Additionally, the filing indicates that the ETF will only accept cash for creating new shares, not Bitcoin.
Cash Creation Solves Regulatory Concerns
The decision to only allow cash creation of new shares addresses regulatory concerns. The SEC expressed discomfort with allowing registered brokers to use Bitcoin and preferred that no unregistered subsidiaries touch the cryptocurrency. Cash creation solves this issue by ensuring that only the issuer handles Bitcoin.
A Positive Sign for BlackRock
This development suggests that things are progressing well for BlackRock, indicating that the SEC may approve the first Bitcoin ETF in the US. The company initially planned to use the IBTC ticker but changed it to IBIT, as IBTC was already in use for one of its European products.
Understanding Exchange-Traded Products (ETPs)
An exchange-traded product (ETP) is an investment vehicle whose shares are listed on an exchange. ETPs track the performance of assets such as cryptocurrencies or benchmarks like stocks and bonds. Exchange-traded funds (ETFs) fall under the ETP umbrella but differ in that they don’t track real-time cryptocurrency prices.
Potential Approval and Market Impact
The SEC’s previous delays in approving a spot Bitcoin ETF have fueled anticipation of an impending approval. If approved, it is expected that a significant amount of capital will flow into crypto markets.
BlackRock’s Ticker Choice
BlackRock chose IBIT as its new ticker because it was available after the liquidation of Defiance ETF, and it was already being used for one of its European products. This decision ensures clarity and avoids confusion with other tickers.
Hot Take: BlackRock’s Bitcoin ETF Progress Signals Optimism
The selection of a new ticker for BlackRock’s Bitcoin Trust and the decision to allow only cash creation of new shares are positive indications that the SEC may approve the first Bitcoin ETF in the US. If approved, this could lead to a significant influx of capital into crypto markets, marking a historic moment for the industry.
By
By
By
By
By