In a strategic move to increase its chances of gaining approval from the U.S. Securities and Exchange Commission (SEC), BlackRock (BLK) has revised its spot Bitcoin (BTC) exchange-traded fund (ETF) offering to include cash generation and settlement mechanisms.
BlackRock Revises Spot Bitcoin ETF Proposal Ahead of SEC Approvals
This change, which is in line with the SEC's preferred model, comes as expectations grow that the regulator may approve various spot Bitcoin ETF applications in January.
BlackRock first submitted its proposal for the iShares Blockchain and Tech ETF last month and introduced some kind of redemption model.
However, the SEC expressed concerns about investor safety and potential market manipulation, prompting BlackRock to re-evaluate its approach.
The updated proposal now adopts cash generation and redemption mechanisms, a structure the SEC finds safer and more accessible.
This adjustment by BlackRock reflects a broader trend in the industry where many firms are revising their ETF offerings to include cash refunds.
More than a dozen companies have filed for ETFs, anticipating a change in the SEC's stance.
Among them, ARK 21Shares also issued a revised S-1 with a similar change, stating its willingness to issue cash refunds until it receives approval. The SEC had previously postponed some other ETF applications from organizations such as Grayscale, Ark 21Shares, VanEck and Hashdex.
*This is not investment advice.