BlackRock Revamps Bitcoin ETF Application to Ease Bank Participation, Touts Improved Protections
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BlackRock revised its spot Bitcoin ETF application to allow banks to participate more easily by creating new fund shares with cash rather than crypto.
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The new "in-kind redemption" model shifts risk from authorized participants (APs) to market makers.
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BlackRock claimed the new structure offers better resistance to manipulation, strengthens investor protections, lowers costs, and increases harmonization.
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BlackRock met with the SEC for the 3rd time on Dec. 11th to discuss the revisions.
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The SEC must decide on BlackRock's application by Jan. 15th, with a final deadline of March 15th.