BlackRock Revises Spot Bitcoin ETF Proposal Ahead of Rumored SEC Approvals

Posted by on Dec 19th, 2023

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…

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