BlackRock has amended the bitcoin spot ETF to state creation and redemption will be in cash, with in-kind to follow subject to approval.
“The Trust issues and redeems Shares only in blocks of 40,000,” the filing says.
“These transactions will take place in exchange for cash.
Subject to The Nasdaq Stock Market LLC (“NASDAQ”) receiving the necessary regulatory approval to permit the Trust to create and redeem Shares in-kind for bitcoin (the ‘In-Kind Regulatory Approval’), these transactions may also take place in exchange for bitcoin.”
This follows an amendment by Ark Invest earlier today that likewise changed in-kind or cash to just cash, but WisdomTree has also filed an amendment today and that says:
“For a redemption of Shares, the Sponsor shall arrange for the bitcoin represented by the Basket to be distributed in-kind or sold and the cash proceeds distributed.”
Presumably WisdomTree will have to file another amendment as it has become clear at this point that the Securities and Exchange Commission (SEC) wants the issuance and redemption to be in cash to start with.
That means the last matter that was to be addressed has come to a conclusion. All that’s left now is for the non amended filings to be amended, like Fidelity, and then approval.
If they are all amended this week, then approval may come next week with trading to start next year, or SEC waits until the next minute (Jan 10) with trading to start in or near February.
Whichever way, after two months of discussions between SEC and applicants, it looks like this matter has come to an end with approval expected within three weeks.