BlackRock, the world’s largest asset manager, has submitted a revised proposal for a spot Bitcoin exchange-traded fund (ETF) as anticipation of potential SEC approval grows.
The updated proposal is an effort to address SEC concerns and enhance the likelihood of securing approval for a spot Bitcoin ETF in the US.
BlackRock’s initial application for the iShares Blockchain and Tech ETF faced scrutiny due to its in-kind redemption model.
BlackRock stated in its updated filing, “These transactions will take place in exchange for cash. Subject to the In-Kind Regulatory Approval, these transactions may also take place in exchange for bitcoin.”
The SEC expressed worries about investor safety and market manipulation, prompting BlackRock to revise its proposal to include cash creation and redemption mechanisms favored by the SEC.
The move aligns with a trend of other ETF applicants updating their proposals amid speculation that the SEC might approve spot Bitcoin ETFs in January 2024.
BlackRock’s decision to prioritize cash creations in the revised filing is seen as a positive development, contributing to a 5.5% increase in Bitcoin’s price, surpassing $43,000, and adding over $50 billion to its market cap in the past 24 hours.
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