BlackRock Revises Spot Bitcoin ETF Proposal Ahead of Rumored SEC Approvals
Black Rock's ETF proposal now includes cash redemptions, a concession to the SEC that may improve the fund's approval odds.
On Monday, Blackrock (BLK) filed a revised spot bitcoin (BTC) exchange-traded fund (ETF) proposal in a bid to appease regulators, likely boosting its odds of securing a first-of-its-kind approval in the U.S.
Under the updated proposal, Blackrock’s ETF will feature cash creation and redemption mechanisms, the model favored by the Securities and Exchange Commission (SEC). The world’s largest asset manager is the latest of several firms to update its proposal amid speculation the SEC could approve a swath of spot bitcoin ETF applications as early as January.
Blackrock first applied for its iShares Blockchain and Tech ETF last month, proposing an in-kind redemption model.
However, the SEC scrutinized the proposal, raising concerns about investor safety and market manipulation. ETFs typically feature one of two types of redemption and creation mechanisms: In-kind or cash.
An in-kind redemption structure, which many firms say is more appealing to investors, enables firms to redeem shares for bitcoin held by their ETFs. Cash redemptions, which the SEC regards as the safer and more accessible redemption option, replace those shares with their equivalent cash value.
Blackrock is the latest of several firms to agree to issue cash redemptions until in-kind redemptions are approved. More than a dozen firms have filed ETF applications so far. ARK 21Shares has also published a revised S-1 with a similar change.
The SEC has delayed aseveralether ETF applications by Grayscale, Ark 21shares, Vaneck and Hashdex.
UPDATE (Dec. 19, 04:55 UTC): Updated with additional context and information.
Edited by Sam Reynolds.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Vitalik Buterin Backs ZKsync: Driving Institutional-Level Ethereum Scalability
- Vitalik Buterin's endorsement of ZKsync's Atlas upgrade boosts Ethereum's L2 scalability and institutional adoption. - ZKsync's 15,000 TPS and $15B in institutional investments highlight its institutional-grade performance and token economics. - Enterprise partnerships and RWA projects position ZKsync as a cost-effective alternative to Arbitrum, challenging its 45% TVL dominance. - Planned Fusaka upgrade and Buterin's ZK advocacy aim to enhance Ethereum's scalability and value capture without compromisin
Zcash Halving: What It Means for Cryptocurrency Investors in 2025
- Zcash's 2028 halving will reduce annual inflation to 1%, reinforcing its deflationary model after prior 50% block reward cuts in 2020 and 2024. - The 2024 halving triggered 1,172% price surge followed by 96% drop, highlighting volatility risks despite growing institutional investments like Grayscale's $137M Zcash Trust. - Privacy-focused hybrid model (shielded/transparent transactions) attracts institutional interest but faces EU MiCA regulatory scrutiny, requiring selective compliance strategies. - Inve
CleanTrade and the Evolution of Clean Energy Markets: Market Fluidity, Openness, and the Role of the CFTC
- CleanTrade, a CFTC-approved SEF, transforms clean energy markets by integrating VPPAs, PPAs, and RECs under institutional-grade transparency. - The platform unlocks liquidity through real-time pricing and centralized trading, accelerating net-zero transitions for corporations and utilities . - Enhanced transparency via project-specific REC data combats greenwashing, while regulatory alignment boosts investor confidence and market legitimacy. - By bridging traditional and renewable energy markets, CleanTr
The CFTC-Authorized Clean Energy Marketplace: An Innovative Gateway for Institutional Investors
- REsurety’s CleanTrade platform, CFTC-approved as a SEF, addresses clean energy market illiquidity and opacity by centralizing VPPAs, PPAs, and RECs. - Within two months of its 2025 launch, it attracted $16B in notional value, enabling institutional investors to streamline transactions and reduce counterparty risk. - By aggregating market data and automating compliance, CleanTrade enhances transparency, aligning with ESG priorities and regulatory certainty for institutional portfolios. - It democratizes a
Trending news
MoreCrypto prices
More
