BlackRock said the new ETF model offers “superior resistance to market manipulation” — something the SEC has long used as a reason to reject spot Bitcoin ETFs.
BlackRock has revised its spot Bitcoin (BTC) exchange-traded fund (ETF) application to make it easier for Wall Street banks to participate by creating new shares in the fund with cash rather than just crypto.
The new in-kind redemption “prepay” model will allow banking giants such as JPMorgan or Goldman Sachs to act as authorized participants for the fund, letting them circumvent restrictions that prevent them from holding Bitcoin or crypto directly on their balance sheets.
The new model was presented by six members of BlackRock and three from Nasdaq in a Nov. 28 meeting with the United States Securities and Exchange Commission (SEC).