{"id":87406,"date":"2023-11-23T11:00:01","date_gmt":"2023-11-23T09:00:01","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=87406"},"modified":"2025-09-13T11:38:28","modified_gmt":"2025-09-13T08:38:28","slug":"blackrock-and-sec-discuss-redemption-mechanics-for-a-bitcoin-etf","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/blackrock-and-sec-discuss-redemption-mechanics-for-a-bitcoin-etf\/","title":{"rendered":"BlackRock and SEC discuss redemption mechanics for a Bitcoin ETF"},"content":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) and BlackRock <a href=\\\"https:\/\/www.sec.gov\/comments\/sr-nasdaq-2023-016\/srnasdaq2023016-301739-769762.pdf\\\">held a meeting<\/a>, in which they discussed the details of a spot exchange-traded fund based on the leading cryptocurrency.<\/p>\n<p>\\n\\n<\/p>\n<p>According to the memorandum, the asset manager presented a slide deck describing two possible redemption mechanisms for its iShares Bitcoin Trust \u2014 in-kind delivery of the underlying asset and cash settlement.<\/p>\n<p>\\n\\n<\/p>\n<p>The first method involves delivering Bitcoin to a market maker, who would then sell them for fiat. The second involves delivering the digital assets from <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-cryptocurrency-etf\">ETF<\/a> to the investor in exchange for the investor&#8217;s securities.<\/p>\n<p>\\n\\n<\/p>\n<p>Bloomberg market analyst James Seyffart noted that BlackRock prefers the in-kind redemption option, as &#8216;this is probably the most transparent structure for them and for clients&#8217;.<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Looks like <a href=\\\"https:\/\/twitter.com\/BlackRock?ref_src=twsrc%5Etfw\\\">@BlackRock<\/a> also met with SEC! There\u2019s a couple slides in relation to in-kind vs cash creation. Based on this it looks like BlackRock prefers in-kind for their <a href=\\\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\\\">#bitcoin<\/a> ETF (makes sense as its probably cleanest structure for them &#038; end investors) <br \/>h\/t <a href=\\\"https:\/\/twitter.com\/btcNLNico?ref_src=twsrc%5Etfw\\\">@btcNLNico<\/a> <a href=\\\"https:\/\/t.co\/AK0XspL4zJ\\\">https:\/\/t.co\/AK0XspL4zJ<\/a> <a href=\\\"https:\/\/t.co\/eeuUT9T5mn\\\">pic.twitter.com\/eeuUT9T5mn<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\\\"https:\/\/twitter.com\/JSeyff\/status\/1727341988436209903?ref_src=twsrc%5Etfw\\\">November 22, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n\\n<\/p>\n<p>Earlier, analyst Eric Balchunas <a href=\\\"https:\/\/twitter.com\/EricBalchunas\/status\/1725559994995573086?s=20\\\">noted<\/a> that most Bitcoin fund issuers prefer payments in the underlying asset, but the SEC advocates for fiat. He called the debates on this topic the latest &#8216;subplot in an endless drama&#8217;.<\/p>\n<p>\\n\\n<\/p>\n<p>On June 15, BlackRock <a href=\"https:\/\/u1f987.com\/en\/news\/blackrock-files-for-bitcoin-etf-launch\">sent to the Commission<\/a> an application for a Bitcoin-based investment product. Following the financial giant, similar requests came from <a href=\"https:\/\/u1f987.com\/en\/news\/valkyrie-seeks-to-register-a-spot-bitcoin-etf\">Valkyrie<\/a>, <a href=\"https:\/\/u1f987.com\/en\/news\/fidelity-investments-files-for-spot-bitcoin-etf\">Fidelity Investments<\/a>, <a href=\"https:\/\/u1f987.com\/en\/news\/wisdomtree-and-invesco-file-applications-to-launch-bitcoin-etfs\">WisdomTree and Invesco<\/a>.<\/p>\n<p>\\n\\n<\/p>\n<p>On August 31, the SEC <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-slips-below-26000-as-sec-decision-on-bitcoin-etfs-weighs-on-markets\">delayed<\/a> decisions on several Bitcoin ETFs at least until mid-October. By the end of September, the regulator <a href=\"https:\/\/u1f987.com\/en\/news\/sec-delays-decision-on-three-more-spot-bitcoin-etf-applications\">postponed<\/a> consideration of the applications to January 2024.<\/p>\n<p>\\n\\n<\/p>\n<p>Earlier, the U.S. regulator <a href=\"https:\/\/u1f987.com\/en\/news\/grayscale-discussed-details-of-a-spot-bitcoin-etf-with-the-sec\">met<\/a> with Grayscale&#8217;s leadership to discuss converting their Bitcoin Trust into an ETF.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) and BlackRock held a meeting to discuss the details of a spot Bitcoin ETF.<\/p>\n","protected":false},"author":1,"featured_media":87407,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[865,569,128],"class_list":["post-87406","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blackrock","tag-etf","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"29","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=87406"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87406\/revisions"}],"predecessor-version":[{"id":87408,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/87406\/revisions\/87408"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/87407"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=87406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=87406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=87406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}