BlackRock, one of the world’s largest asset managers, submitted its S-1 to the US Securities and Exchange Commission (SEC). Bitcoin ETF announced that it has updated its application.
The updated document submitted on Monday detailed new aspects of the creation and redemption mechanisms for the proposed fund, identified by the acronym IBIT.
This development BlackRock It followed recent discussions between the regulator and the agency. The company’s move to a cash-only approach marks a significant shift in ETF strategy.
Eric Balchunas, a senior ETF analyst, explained that the firm will now accept cash to create new Bitcoin ETF shares, rather than directly depositing Bitcoin.
As Koinfinans.com reported, this strategy is in line with the SEC’s preference for cash transactions in ETFs, as it potentially reduces some of the risks directly associated with the use of cryptocurrencies.
The move marks BlackRock’s efforts to streamline its operations ahead of the holiday season.
On the other hand, ARK Invest and 21Shares also updated their applications for a spot Bitcoin ETF. Similarly, Wisdomtree has introduced a modified proposal for its applications, which reflects a broader industry trend.