BlackRock's proposed spot bitcoin ETF gets a ticker in latest filing with SEC
Quick Take
- BlackRock’s proposed spot bitcoin exchange-traded fund now has a ticker: IBIT.
- Updated filing includes new language about the fund’s creation and redemption model.
BlackRock's proposed spot bitcoin ETF was christened with the ticker IBIT, according to an amended S-1 filing on Monday with the Securities and Exchange Commission.
The updated filing also included new language about the creation and redemption mechanism to be employed by the fund, a topic of recent meetings between BlackRock and SEC officials. The latest update appeared to nod toward a so-called cash redemption model that analysts have said the SEC seems to be favoring, but it left open room for an "in-kind" process, subject to approval from regulators.
"The Trust issues and redeems Baskets on a continuous basis," according to the filing. "These transactions will take place in exchange for cash. Subject to the In-Kind Regulatory Approval, these transactions may also take place in exchange for bitcoin."
"BlackRock has gone cash only," Bloomberg Intelligence analyst Eric Balchunas wrote on X. "That’s basically a wrap. Debate over. In-kind will have to wait. It’s all about getting ducks in row bf holidays. Good sign."
Redemption models
BlackRock likely wants to have an "in-kind" redemption model that would give the asset manager greater flexibility in managing the portfolio. But the SEC likely favors what is called a cash model that would require BlackRock to move the bitcoin out of storage, sell it right away and then give the cash back to the investor in the event they want to redeem shares.
Memos show that firms including BlackRock and Fidelity have met with the agency over the past few weeks to go over details about how the redemption process would work for a spot bitcoin ETF.
Ark 21Shares and WisdomTree also filed amended S-1 filings with the SEC on Monday for their proposed spot bitcoin funds. The regulator has yet to approve one, although the market has surged amid optimism that a decision could be closer.
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(Updates with additional details throughout.)
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