SEC pressures Blackrock compliance in fund creation and redemption model in Bitcoin ETF

Investment management giant BlackRock has amended its S-1 filing with the Securities and Exchange Commission (SEC) for its proposed spot Bitcoin exchange-traded fund (ETF). The amendment reflects BlackRock’s decision to initially exclude in-kind creations and redemptions for its Bitcoin ETF, yielding to pressure from the SEC. In-kind creations and redemptions involve exchanging Bitcoin for ETF shares or vice versa, helping keep ETF share prices aligned with the underlying asset (BTC). While BlackRock has opted for cash creations initially, the amended filing suggests the firm aims to eventually introduce in-kind creations, subject to regulatory approval. The SEC recently recommended companies launching Bitcoin ETFs consider cash creations over in-kind creations.(Source: Cryptobriefing)