[NEWS] BlackRock submits revised proposal for Bitcoin spot ETF; ticker to be "IBIT"

BlackRock filed an amended Bitcoin spot ETF application with the SEC on the 18th.

According to the amended filing, the ticker for BlackRock's proposed Bitcoin spot ETF, iShares Bitcoin Trust, has been decided to be "IBIT." The ticker was previously planned to be "IBTC."

The document also included new language on the redemption mechanism the fund will adopt. This appears to have been included as a result of discussions between BlackRock and the SEC. The SEC and many analysts have advocated for a so-called cash redemption model, which BlackRock has also adopted.

According to the filing, the trust will issue continuously and transactions will be made in exchange for cash. It also appears that transactions may be made in exchange for Bitcoin, subject to regulatory spot approval.

Bloomberg analyst Eric Balchunas posted on X (formerly Twitter) that "BlackRock is now cash redemption only. The discussion is over. This is a good sign."

While the cash redemption model is expected to be adopted this time, BlackRock is believed to have preferred a physical redemption model, which would exchange a basket of physical stocks for the ETF.

However, the SEC supported a cash redemption model that would require BlackRock to remove the Bitcoin from storage, sell it immediately, and return the cash to investors if they want to redeem the shares.

Companies such as BlackRock and Fidelity are currently in discussions with the SEC to work out the details of how the redemption process for Bitcoin physical ETFs would work.

Ark, etc. also file amendments

Ark 21Shares and WisdomTree also filed amended S-1 applications with the SEC for Bitcoin physical ETFs on the 18th. Although the SEC has not yet approved it, optimism that a decision is imminent is spreading in the market, and the price of Bitcoin (BTC) has risen by about 5% from the previous day.

The deadline for BlackRock's IBIT review is January 15th next year. The SEC may postpone it again, but many analysts believe that it is likely to be approved.

In an exclusive interview with CNBC's "Money Movers" last weekend, SEC Chairman Gary Gensler said, "The cryptocurrency market is experiencing a bullish wave," but also said, "There is still a lot of fraud and market manipulation."

Reference: S-1 filing
Image: Shutterstock

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