Bitcoin ETF applicants will have to ‘bend the knee’ on cash redemption model

The SEC is pushing Bitcoin ETF issuers down the cash create route for creation and redemptions, but BlackRock has other ideas.

As spot Bitcoin (BTC) exchange-traded fund (ETF) issuers iron out details of their filings with the United States Securities and Exchange Commission (SEC), the regulator appears steadfast in demanding a “cash” redemption model instead of an alternative model proposed by other issuers such as BlackRock.

On Dec. 14, finance lawyer Scott Johnsson said that ETF applicants Invesco and Galaxy became the latest to bend the knee to using a cash creation and redemption model for their ETF.

Seyffart also noted that Bitwise has been set for cash-only creates/redeems since Dec. 4, “though for months they had in-kind or cash in their documents before this.”

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