BlackRock’s proposed spot Bitcoin ETF received a ticker in a recent SEC filing.
BlackRock’s proposed spot Bitcoin ETF has been named IBIT, according to an amended S-1 filing with the Securities and Exchange Commission (SEC) on Monday.
The updated filing also includes new details about the creation and redemption mechanisms the fund will use, which was the subject of a recent meeting between BlackRock and SEC officials. The latest update appeared to be a nod to the so-called cash repayment model that analysts said the SEC appears to favor, but left room for an “in-kind” process subject to regulator approval.
“The trust issues and repays baskets on an ongoing basis,” according to the filing. “These transactions will be conducted in cash. Subject to spot regulatory approvals, these transactions may also be conducted in Bitcoin.”
“BlackRock has become cash-only,” said Bloomberg Intelligence analyst Eric Balchunas. wrote on
repayment model
BlackRock will likely want an “in-kind” repayment model that gives asset managers greater flexibility in managing their portfolios. but tThe SEC would likely favor a cash model that would require BlackRock to take Bitcoin out of storage, sell it immediately, and then return the cash to investors if they want to redeem their shares.
The memo shows that firms including BlackRock and Fidelity have been meeting with institutions over the past few weeks to discuss details of how the redemption process for spot Bitcoin ETFs will work.
Ark 21Shares and WisdomTree also filed amended S-1 filings with the SEC on Monday for their proposed spot Bitcoin fund. Regulators have yet to give approval, but markets have surged on optimism that a decision could be near.
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(It will be updated throughout with additional details.)
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About the author
Sarah is a reporter for The Block covering policy, regulation and legal events. Sarah was previously a reporter writing about securities regulation at CQ Legal, where she first began her reporting on cryptocurrencies. She Sarah has also written for The Bond Buyer and American Banker, among other financial publications. She graduated from the University of Missouri with a degree in Print and Digital Journalism. Sarah lives in Washington, DC and she is an avid coffee lover. You can follow her on Twitter @ForTheWynn.
