BlackRock assigned the symbol IBIT to its spot Bitcoin ETF in new SEC filing

BlackRock Bitcoin ETF

BlackRock, the giant investment manager, took a significant step towards the realization of its long-awaited Bitcoin spot ETF by revealing the symbol IBIT in the latest S-1 filing with the Securities and Exchange Commission (SEC). The update also provides key insights into the fund’s creation and redemption model, highlighting a potential shift towards a cash focus.

BlackRock Bitcoin ETF receives the IBIT symbol and news in the presentation

In the latest version of its SEC filing, BlackRock has assigned the symbol IBIT to its proposed Bitcoin Spot ETF, marking a significant milestone in the regulatory process. This event has generated renewed interest in the cryptocurrency market, as the financial community closely observes the evolution of financial products linked to Bitcoin.

The updated filing also sheds light on the creation and redemption mechanism BlackRock plans to implement in its ETF. This aspect has been the subject of intense discussions between the company and the SEC in recent meetings. The modified version suggests a preference toward a cash redemption model, a choice that has been interpreted by analysts as indicative of the SEC’s inclination toward this methodology.

Also read: BlackRock What is it and how does it work? The controversial investment company

The debate on settlement models

The inclusion of new clauses in the filing reflects BlackRock’s willingness to keep options open regarding the liquidation process. Although the initial preference appears to be the cash model, the possibility of an “in-kind” process has not been completely ruled out and remains subject to regulatory approval.

Bloomberg Intelligence analyst Eric Balchunas emphasized this decision by stating that “BlackRock has opted for cash only,” noting the certainty of this choice. However, Balchunas also suggests that the “in-kind” option could be considered in the future, possibly after securing all the necessary regulatory approvals.

Market outlook and reactions

The choice of the IBIT symbol and decisions related to the redemption model has sparked debates in the financial community. BlackRock, one of the leading asset management companies, is likely looking for a model that gives it flexibility in portfolio management. Meanwhile, the SEC, as a regulatory entity, appears to favor a cash model that ensures immediate settlement of Bitcoin in the event of redemption.

However, this is not an exclusive fight for BlackRock. Other prominent companies, such as Ark 21Shares and WisdomTree, have also filed amendments to their own Bitcoin spot ETF proposals with the SEC. Although the market has experienced an increase in optimism regarding the possibility of a near decision, final approval is still pending from the regulator.

Also read: Who is Larry Fink and how much is his fortune? The founder of BlackRock

Impact on BTC price

The cryptocurrency market reacted positively to BlackRock’s latest update, with the price of Bitcoin rising 4.9% on Monday. Reaching $43,000 at 11:00 PM Colombia, this rally suggests that the news has generated confidence among investors and contributed to bitcoin’s bullish momentum.

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