World’s Largest Asset Manager Adjusts Bitcoin ETF Plan In Response To SEC Input
Blackrock, the world’s largest asset manager, has modified its spot bitcoin exchange-traded fund (ETF) filing following six recent meetings with the U.S. Securities and Exchange Commission (SEC).
In response to the SEC’s concerns, the firm now plans to seed Ishares Bitcoin Trust with $10 million on Jan. 3, 2024, using a cash creation model instead of its initial preference for the in-kind model. The amendment specifies that the seed capital investor, an affiliate of the trust’s sponsor, purchased $100,000 worth of seed shares on Oct. 27, subject to conditions. Bloomberg analysts suggest that Blackrock’s move on Jan. 3 indicates a potential imminent launch of its spot bitcoin ETF, trading under Ticker IBIT.
Notably, Blackrock’s strategic shift to the cash creation model aligns with the SEC’s preference, and the regulatory body aims to approve applicants who have adopted this approach. Despite facing multiple SEC meetings and filing amendments, Blackrock anticipates approval before the Jan. 10 deadline, along with expectations for the approval of multiple spot bitcoin ETFs by other industry players.
Clever Robot News Desk 26th December 2023
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