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BlackRock refines Bitcoin Spot ETF proposal to attract investors

EditorOliver Gray
Published 11/29/2023, 07:30 PM
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In a move to boost investor interest in cryptocurrency funds, BlackRock (NYSE:BLK), the world's largest asset manager, has refined its proposal for an in-kind Bitcoin Spot Exchange-Traded Fund (ETF). The revised proposal, which was presented to the Securities and Exchange Commission (SEC) and Nasdaq officials on Monday, seeks to enable direct trading of Bitcoin (BTC) rather than relying on futures as cash-based ETFs do.

This update to the ETF model aims to address the SEC's persistent preference for cash-oriented Bitcoin Spot ETFs. Despite BlackRock's efforts to provide a product that would allow investors to trade actual Bitcoin, the SEC has historically been cautious about approving ETFs tied directly to the volatile cryptocurrency market.

The initial proposal for the in-kind Bitcoin Spot ETF was put forward to the SEC on November 20. The latest refined version from BlackRock comes after receiving feedback from the SEC staff, indicating the asset manager's commitment to aligning with regulatory standards while also catering to the growing demand for cryptocurrency investment vehicles.

As the market awaits the SEC's response to this new model, BlackRock's push for innovation in the ETF space reflects the ongoing interest in integrating digital assets into traditional investment portfolios. The outcome of this proposal could signal a significant shift in how investors can engage with Bitcoin through regulated financial products.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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