BlackRock, the world’s largest asset manager, has submitted a new formula to the SEC for its spot Bitcoin ETF.
According to the published statement, BlackRock and SEC representatives met on November 28 and discussed how the exchange-traded fund called iShares Bitcoin Trust would operate.
BlackRock officials had prepared a presentation on how to make in-kind buybacks in the fund during their meeting with the SEC last week. BlackRock in a meeting this week About the revised version of this model made a presentation.
According to the revised model, after buying Bitcoin for short selling, the market maker will transfer cash to the broker/dealer before transferring the ETF shares to the transfer agent through the authorized participant.
Securities and Exchange Commission says buybacks in spot Bitcoin ETFs must be done in-kind may cause problems on the grounds that for cash prefers it to be done.
According to the presentation made by BlackRock, the proposed model has advantages such as low transaction costs, transaction risk being borne by crypto market makers, not investors, and greater resistance to market manipulation.