UPDATED: December 18, 2023, 7:34 p.m. EST
The bitcoin spot ETF offered by BlackRock was named with the symbol IBIT, according to a amended S-1 filing Monday with the Securities and Exchange Commission.
The updated filing also included new language on the creation and redemption mechanism that will be used by the fund, a subject of recent meetings between BlackRock and SEC officials. The latest update appears to nod to a so-called cash buyout model that analysts said the SEC appeared to be supportive, but left open the possibility of an “in-kind” process, subject to regulators' approval.
“The Trust issues and redeems baskets on an ongoing basis,” according to the filing. “These transactions will take place in exchange for cash. Subject to in-kind regulatory approval, these transactions may also take place in exchange for bitcoin.”
“BlackRock only opted for cash,” said Eric Balchunas, analyst at Bloomberg Intelligence. wrote on
Buyback models
BlackRock likely wants to have an “in-kind” buyout model that would give the asset manager greater flexibility in managing the portfolio. ButThe SEC likely favors what's called a treasury model that would require BlackRock to take bitcoin out of storage, sell it immediately, and then return the money to the investor if they want to buy back their shares.
The memos show that companies including BlackRock and Fidelity met with the agency in recent weeks to discuss in detail how the redemption process would work for a spot Bitcoin ETF.
Ark 21Shares and WisdomTree also filed amended S-1 documents with the SEC on Monday for their proposed Bitcoin spot funds. The regulator has yet to approve one, although the market has surged amid optimism that a decision may be closer.
BitcoinThe price of rose 2.9% on Monday to trade at $42,581 as of 7:31 p.m. ET, according to The block data.
(Updated with additional details throughout.)
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