The U.S. SEC is considering a proposal to amend BlackRock's Bitcoin ETF to allow for physical redemptions
According to The Block, the U.S. Securities and Exchange Commission (SEC) is considering a proposal that would change BlackRock's spot Bitcoin ETF to allow for physical redemptions. In a document released on Thursday, the SEC acknowledged the proposal and requested comments within 21 days of its publication in the Federal Register. According to the document, the SEC can then decide whether to approve, reject or "initiate proceedings".
Based on Form 19b-4 filings, Nasdaq last month submitted an amended rule filing on behalf of BlackRock that would allow iShares Bitcoin Trust to conduct physical redemptions and creations. Over a year ago when the SEC was considering whether or not to approve a spot Bitcoin ETF, companies were discussing technical details about how this product's redemption process would work. The SEC favored cash mode which required BlackRock to remove Bitcoins from storage immediately sell them off and return cash back to investors. The SEC later approved BlackRock's spot ETF proposal along with other proposals in January 2024.
Bloomberg Intelligence ETF analyst James Seyffart stated in a post on platform X that changing redemption and creation processes does not mean individual investors will be able to trade physically; only authorized participants can do so.
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.
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