On December 18, 2023, BlackRock amended the form S-1 for its iShares Bitcoin Trust in pursuit of a spot Bitcoin ETF filing with the SEC.
Blackrock, an investment manager, amended Form S-1 for its iShares Bitcoin Trust on Monday, December 18, 2023, as part of its filing with the U.S. Securities and Exchange Commission (SEC) regarding its spot Bitcoin ETF.
Cash Redemption Vs In-Kind Bitcoin ETF Model
The impasse concerning the approval of spot Bitcoin ETFs revolves around the redemption model that underpins the ETFs’ operations. With this intent, Blackrock amended its Form S-1 in its most recent filing.
The investment manager failed to confirm the “in-kind” redemptions portion for SEC approval in the filing but did confirm the currency redemption system. It stated:
“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.”
Whether the US SEC would ultimately sanction the cash redemption model before or after the Bitcoin ETF’s formal approval is still being determined.
