BlackRock’s Stand for a Cleaner Structure in Bitcoin ETF Pursuit
BlackRock, the world’s largest asset manager, reportedly advocated for the in-kind creation method in its pursuit of a Bitcoin exchange-traded fund (ETF), diverging from the cash creation model favored by the U.S. Securities and Exchange Commission (SEC).
Recent discussions between BlackRock and other spot Bitcoin ETF applicants and the SEC suggest a preference for in-kind creation. Bloomberg analyst James Seyffart noted BlackRock’s inclination towards the in-kind model for its Bitcoin ETF, citing its cleaner structure for both the company and end investors. Standing alongside Ark Invest, investors deem this choice beneficial in terms of spreads and tax implications.
Despite considerations from the SEC on using the cash-create method to avoid unregistered brokers, BlackRock and Ark Invest remain firm on in-kind creates. The SEC, led by Chair Gary Gensler, is currently evaluating eight to ten spot Bitcoin ETF applications, with expectations of potential approvals in the early part of the upcoming year.
Clever Robot News Desk 27th November 2023
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