BlackRock and Ark Invest are engaged in discussions with the US Securities and Exchange Commission (SEC) regarding the establishment of a spot Bitcoin exchange-traded fund (ETF). One of the key points of contention is the method of investor redemptions, which has significant implications for tax purposes. BlackRock and Ark Invest are advocating for in-kind redemptions, where market makers would receive Bitcoin directly in exchange for ETF shares. This approach is seen as more tax-efficient, as it could prevent capital gains taxes that would be triggered if the fund had to sell securities to meet redemptions. The SEC’s stance on cash redemptions is crucial in determining the structure and operation of Bitcoin ETFs. The ongoing dialogue between asset managers and the SEC suggests that a spot Bitcoin ETF could be launched by January 2024. These negotiations are shaping the future of cryptocurrency investments and setting precedents for the industry.

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Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	1
People	Eric Balchunas
Companies	Ark Invest, BlackRock, IRS, US Securities and Exchange Commission (SEC), Nasdaq
Currencies	Bitcoin
Securities	None