BlackRock has made amendments to its proposal for a spot bitcoin exchange-traded fund (ETF), now allowing cash redemptions. This strategic shift aims to enhance the likelihood of approval from the U.S. Securities and Exchange Commission (SEC).

The surge in filings for spot bitcoin and ether ETFs, particularly from established financial entities, has injected vitality into the crypto market this year, revitalizing it following a series of setbacks in 2022.

In a recent regulatory filing, BlackRock’s iShares Bitcoin Trust ETF stated, “The Trust facilitates continuous issuance and redemption of baskets. These transactions will occur using cash. Pending regulatory approval, these transactions may also involve the exchange of bitcoin.”

Despite the SEC’s prior rejections of all spot bitcoin ETF applications over concerns about potential fraud, optimism lingers among market participants regarding a potential approval in the upcoming year.

Initially, the world’s largest asset manager, BlackRock, had intended to exclusively redeem baskets to investors in bitcoin or through ‘in-kind’ means.

A spot crypto ETF is designed to mirror the market price of the underlying crypto asset, providing investors with exposure to the token’s value without direct currency acquisition.


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