{"id":88421,"date":"2023-12-19T10:03:03","date_gmt":"2023-12-19T08:03:03","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=88421"},"modified":"2025-09-13T17:57:26","modified_gmt":"2025-09-13T14:57:26","slug":"blackrock-explains-the-redemption-mechanism-for-bitcoin-etf","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/blackrock-explains-the-redemption-mechanism-for-bitcoin-etf\/","title":{"rendered":"BlackRock explains the redemption mechanism for Bitcoin ETF"},"content":{"rendered":"<p>BlackRock has assigned the ticker IBIT to a potential spot <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-cryptocurrency-etf\">ETF<\/a> based on the first cryptocurrency, and explained its creation and redemption mechanism. The information is in the <a href=\\\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1980994\/000143774923034772\/bit20231215_s1a.htm\\\">updated documentation<\/a>.<\/p>\n<p>The redemption model contemplates cash settlement only. Redemption in kind (the underlying asset) has not yet received approval from the U.S. Securities and Exchange Commission.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\\&#8221;The Trust issues and redeems Baskets on a continuous basis. These transactions will be conducted in exchange for cash. Subject to regulatory approvals, these transactions may also be conducted in exchange for bitcoins,\\&#8221; the document says.<\/p>\n<\/blockquote>\n<p><span data-descr=\\\"U.S. Securities and Exchange Commission\\\" class=\\\"old_tooltip\\\">SEC<\/span> favours the so-called cash settlement model, which would require BlackRock to withdraw the first cryptocurrency from custody, immediately sell it, and then return the funds to investors who wish to redeem shares.<\/p>\n<p>According to Bloomberg ETF analyst Eric Balchunas, the asset manager will have to wait before adopting the in-kind mechanism.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">BlackRock has gone cash only. That&#8217;s basically a wrap. Debate over. In-kind will have to wait. It&#8217;s all about getting ducks in row bf holidays. Good sign. <a href=\\\"https:\/\/t.co\/vgocs1aIwS\\\">https:\/\/t.co\/vgocs1aIwS<\/a><\/p>\n<p>\u2014 Eric Balchunas (@EricBalchunas) <a href=\\\"https:\/\/twitter.com\/EricBalchunas\/status\/1736906286388703444?ref_src=twsrc%5Etfw\\\">December 19, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\\&#8221;BlackRock has moved to cash only. Essentially, it&#8217;s a wrapper. The debates are over. &#8230; The point is to gather one&#8217;s thoughts before the holidays. A good sign,\\&#8221; he stressed.<\/p>\n<\/blockquote>\n<p>In November the U.S. Securities and Exchange Commission <a href=\"https:\/\/u1f987.com\/en\/news\/blackrock-and-sec-discuss-redemption-mechanics-for-a-bitcoin-etf\">discussed<\/a> with BlackRock the details of the spot exchange-traded fund. At that time the firm showed two possible types of redemption.<\/p>\n<p>On June 15, BlackRock <a href=\"https:\/\/u1f987.com\/en\/news\/blackrock-files-for-bitcoin-etf-launch\">filed<\/a> with the Commission for a spot Bitcoin ETF product. Following the financial giant, similar requests arrived 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>On August 31 the regulator <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-slips-below-26000-as-sec-decision-on-bitcoin-etfs-weighs-on-markets\">delayed<\/a> decision on several Bitcoin ETFs at least until mid-October. In late September the agency <a href=\"https:\/\/u1f987.com\/en\/news\/sec-delays-decision-on-three-more-spot-bitcoin-etf-applications\">moved<\/a> the consideration of applications to January 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BlackRock assigned the ticker IBIT to a potential spot ETF based on the first cryptocurrency, and explained its creation and redemption mechanism.<\/p>\n","protected":false},"author":1,"featured_media":88422,"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-88421","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":"54","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/88421","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=88421"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/88421\/revisions"}],"predecessor-version":[{"id":88423,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/88421\/revisions\/88423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/88422"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=88421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=88421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=88421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}