[NEW] BlackRock makes progress on Bitcoin spot ETF; in talks with SEC about design

It has been revealed that BlackRock, the world's largest asset management company, is in talks with the SEC (U.S. Securities and Exchange Commission) to finalize the details of a Bitcoin spot ETF. The SEC is also in talks with Grayscale about converting it into a Bitcoin spot ETF, and the move toward approval is accelerating.

Bloomberg ETF analyst James Seyffart said on X (formerly Twitter) that "it appears that they have entered into discussions with the SEC to determine the share redemption structure of the proposed product," and presented a slide outlining the redemption model.

"ETF redemptions typically come in two forms: in-kind and cash," he explained.

The difference between the two ETF models is that the designated participant (financial institution), which is the issuer of the ETF, will either accept orders from investors and entrust their Bitcoin holdings to BlackRock, or deposit cash with BlackRock to purchase Bitcoin. BlackRock is said to have chosen the former mechanism.

Also, Eric Balchunas, an ETF analyst at Bloomberg, said on X, "BlackRock is taking a firm stance on physical shares. There are also reports that the SEC has pointed out that to get out with the first group (those applying for a Bitcoin physical ETF), they will need to make their cash transparent to avoid investors trying to use unregistered brokers."

If BlackRock gets approval to list a Bitcoin physical ETF, it is expected that institutional and individual investors will pour money into the cryptocurrency market. Many analysts predict that billions of dollars will flow into the cryptocurrency market. Some predict that the realization of a Bitcoin physical ETF will likely drive the price of Bitcoin to $141,000 (about 21 million yen) within a year.

Reference:SEC announcement,Seyfert x,Balchunas x
Image: Shutterstock

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