(CTN News) – BlackRock’s recently proposed spot bitcoin ETF has been given the ticker symbol IBIT, as stated in an amended S-1 filing submitted to the Securities and Exchange Commission on Monday.
The updated filing also provided details on the creation and redemption mechanism that will be utilized by the fund, which has been a topic of discussion in recent meetings between BlackRock and SEC officials.
While the filing seemed to indicate a preference for a cash redemption model, it also allowed for the possibility of an “in-kind” process, pending approval from regulators.
According to the filing, the Trust will continuously issue and redeem Baskets, with these transactions primarily occurring in exchange for cash.
However, BlackRock the approval of In-Kind Regulatory Approval,
These transactions may also involve the exchange of bitcoin.
Bloomberg Intelligence analyst Eric Balchunas commented on the development, stating that BlackRock has shifted towards a cash-only approach, suggesting that the debate over the redemption mechanism has been settled for now.
Balchunas also noted that the focus is now on aligning all necessary elements before the holidays, which he views as a positive indication.
BlackRock is likely interested in implementing an “in-kind” redemption model, which would provide the asset manager with more flexibility in managing the portfolio.
On the other hand, the SEC appears to prefer a cash model, which would require BlackRock to transfer the bitcoin out of storage, sell it immediately, and then return the cash to the investor if they wish to redeem shares.
According to memos, BlackRock and Fidelity, among other firms, have recently met with the agency to discuss the specifics of the redemption process for a spot bitcoin ETF.
On Monday, Ark 21Shares and WisdomTree also submitted amended S-1 filings to the SEC for their proposed spot bitcoin funds.
While the regulator has not yet approved any of these funds, the market has experienced a surge in anticipation of a potential decision being made soon.