BlackRock, the asset management company, has submitted a new amendment to the S-1 filing for its spot Bitcoin ETF, the iShares Bitcoin Trust. The latest filing includes several changes, including the addition of a market ticker, IBIT, indicating that the fund intends to trade on the Nasdaq under that label. Previous filings used a blank field as a placeholder for the ticker. The amendment also reflects recent meetings between BlackRock and the U.S. Securities and Exchange Commission (SEC), focusing on cash and in-kind creation and redemption models.
The trust will issue and redeem shares in blocks of 40,000, referred to as “baskets.” While a previous amendment stated that relevant transactions would involve Bitcoin, the latest amendment states that the transactions will occur in exchange for cash. However, Bitcoin transactions remain a possibility if the necessary regulatory approval is received. The amendment also introduces a “Directed Trade Model” for the purchase and sale or settlement of Bitcoin between the trust and various counterparties.
Other changes in the amendment address risks and interest in companies. It clarifies that shares do not serve as interest in or obligations of the fund’s cash custodian (Bank of New York Mellon) and the Bitcoin custodian (Coinbase Custody). The amendment also highlights risks related to the CF Benchmark Index, which determines the trust’s net asset value (NAV), and mentions that system failures and errors at CF Benchmarks Ltd. could lead to losses and costs for the trust and its shareholders. Additionally, it notes that the prime execution agent, Coinbase, has committed to sanctions and AML compliance programs.
BlackRock is one of several asset managers seeking to offer the first spot Bitcoin ETF in the United States. While the SEC has not yet approved its application, there is speculation that a fund may gain approval by January 10, 2024.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | BlackRock, Coinbase, Nasdaq, U.S. SEC, Bank of New York Mellon |
| Currencies | Bitcoin |
| Securities | None |
