BlackRock Revises Bitcoin ETF Application to Ease Bank Participation

New model allows Wall Street banks to create fund shares with cash, potentially resisting market manipulation.

BlackRock has revised its Bitcoin ETF application to make it easier for Wall Street banks to participate by creating new shares in the fund with cash, rather than just crypto.
The new in-kind redemption “prepay” model, will allow banking giants such as JPMorgan or Goldman Sachs to act as authorized participants for the fund.
The SEC has been pushing Bitcoin ETF issuers down the cash create route for creation and redemptions, but BlackRock has other ideas.
BlackRock said the new model also offers 'superior resistance to market manipulation' — which has been one of the primary reasons that the SEC has repeatedly denied all prior spot Bitcoin ETF applications.
The SEC must make a decision on BlackRock’s application by Jan. 15, with the final deadline scheduled for March 15.