BlackRock's proposed spot bitcoin ETF gets a ticker in latest filing with SEC
Quick Take BlackRock’s proposed spot bitcoin exchange-traded fund now has a ticker: IBIT. Updated filing includes new language about the fund’s creation and redemption model.
The updated filing also included new language about the creation and redemption mechanism to be employed by the fund, a topic of recent meetings between BlackRock and SEC officials. The latest update appeared to nod toward a so-called cash redemption model that analysts have said the SEC seems to be favoring, but it left open room for an "in-kind" process, subject to approval from regulators.
"The Trust issues and redeems Baskets on a continuous basis," according to the filing. "These transactions will take place in exchange for cash. Subject to the In-Kind Regulatory Approval, these transactions may also take place in exchange for bitcoin."
"BlackRock has gone cash only," Bloomberg Intelligence analyst Eric Balchunas wrote on X. "That’s basically a wrap. Debate over. In-kind will have to wait. It’s all about getting ducks in row bf holidays. Good sign."
Redemption models
BlackRock likely wants to have an "in-kind" redemption model that would give the asset manager greater flexibility in managing the portfolio. But the SEC likely favors what is called a cash model that would require BlackRock to move the bitcoin out of storage, sell it right away and then give the cash back to the investor in the event they want to redeem shares.
Memos show that firms including BlackRock and Fidelity have met with the agency over the past few weeks to go over details about how the redemption process would work for a spot bitcoin ETF.
Ark 21Shares and WisdomTree also filed amended S-1 filings with the SEC on Monday for their proposed spot bitcoin funds. The regulator has yet to approve one, although the market has surged amid optimism that a decision could be closer.
Bitcoin BTC -1.55% 's price rose 2.9% on Monday to trade at $42,581 at 7:31 p.m. ET, according to The Block data.
(Updates with additional details throughout.)
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
Trump and Wall Street: How long will the love affair last?
Share link:In this post: Wall Street loved Trump’s win at first—stocks jumped, Bitcoin soared, and borrowing costs hit rock bottom, but some sectors started cracking fast. Tax cuts and deregulation made financial and energy stocks shoot up, but tariffs and plans to deport workers freaked out economists and markets. Tariffs mean higher prices for Americans, and even Walmart’s warning it’ll have to raise prices if Trump pushes through with his trade war.
The clash of Bitcoin and benchmark stock indexes
Share link:In this post: The S&P 500 is up 25% this year, with financial and cyclical stocks leading, boosted by optimism around a Trump administration and steady economic growth. Bitcoin has surged 40% this month, nearing $100,000, driven by aggressive trading, retail investor enthusiasm, and headlines hinting at government support. MicroStrategy’s stock hit a $100 billion market cap, tripling its Bitcoin holdings’ value, but its wild 32% drop from intraday highs shows cracks in the frenzy.
Ethereum price rises with market recovery
Google AI Gemini Predicts $4500 Price Target For ETH in December, This Cat Meme Coin is Already Pumping
Trending news
MoreCrypto prices
More
