Major US asset managers are working on revising their ETF filings in the hope of receiving SEC’s approval to list Bitcoin spot ETFs. The latest reports suggest that BlackRock, Cathie Wood’s ARK, and WisdomTree are making adjustments to their filings to comply with the U.S. SEC’s cash redemption model. BlackRock and ARK Invest have already amended their S-1 registration statements, indicating their willingness to accept the cash redemption system instead of the initially proposed in-kind redemptions.
ARK’s filing reveals that the ARK 21Shares Bitcoin ETFZ will only permit cash creations and redemptions, subject to approval from regulators. Similarly, BlackRock’s filing carries provisions for non-cash transactions, contingent on the SEC’s approval and the Nasdaq Stock Market’s ability to create and redeem shares in kind for Bitcoin.
An ETF analyst, Eric Balchunas, stated that although ARK and its partner, 21Shared, did not want cash creations, they prefer in-kind redemptions. However, the SEC has refused to compromise its position for cash creation. If ARK compromises to please the SEC, Balchunas believes that BlackRock will likely follow, and Bitcoin ETF approval will be faster.
Prominent investor Vance Harwood believes that the SEC’s stance on Bitcoin ETF approval is understandable and suggests that the process of share creations can help clarify the SEC’s position. Read More
