James Seyffart, an ETF analyst at Bloomberg, highlighted that BlackRock appears to favor “in-kind” over “cash create” for its iShares Bitcoin Trust ETF in a recent tweet. The analyst is confident that BlackRock would be better off going with this choice because it likely offers the most straightforward structure for the asset manager and its final investors.
There have been reports that the US Securities and Exchange Commission is in talks with exchanges on the much-anticipated release of a spot Bitcoin exchange-traded fund. The main topic of discussion is the decision between the “in-kind” redemption model and the cash model summary for the upcoming ETF launch.
Seyffart provided a screenshot of a document created by BlackRock in which the company distinguished between the two redemption models. The in-kind approach will only need five steps, beginning with the Market Marker (MM) contacting an authorized participant (AP) to place the redemption order.
As to the famous analyst Eric Balchunas, “Hearing chatter SEC’s Trading & Markets engaged with exchanges this week on spot bitcoin ETF 19b-4s, is advising them they’d like the ETFs to do cash creates (vs in-kind), and has asked them to get in amendments in next couple weeks.
Also Read: Grayscale Met SEC To Discuss Spot Bitcoin ETF Application
