BlackRock’s Innovative Plan to Mitigate Risk in Bitcoin ETF Garners Attention
BlackRock aims to streamline Wall Street banks’ participation in its potential Bitcoin ETF, planning to transfer risk to crypto market makers.
In a late November meeting with Nasdaq and the SEC, BlackRock discussed a unique redemption approach for ETF shares, addressing feedback on its Bitcoin ETF application. If approved, the Bitcoin ETF would offer investors exposure to Bitcoin without direct asset purchase or storage. The SEC has hesitated due to concerns about market manipulation in Bitcoin markets.
While the SEC has until January 15 to decide on BlackRock’s iShares Bitcoin Trust (IBTC) application, analysts anticipate earlier decisions between January 8 and 10. The recent meeting addressed SEC concerns about BlackRock’s share redemption model, proposing a T+1 settlement that enhances resistance to market manipulation. The revised model streamlines the redemption process for large institutions, potentially attracting more institutional investment into the Bitcoin ETF.
Clever Robot News Desk 14th December 2023
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