Major applicants for a spot Bitcoin exchange-traded fund (ETF) in the United States are amending their filings to comply with the cash redemption model demanded by securities regulators. Investment manager BlackRock and Cathie Wood’s ARK Invest have updated their S-1 registration statements for a spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC).

The amendments relate to the cash creation and redemption model for proposed spot Bitcoin ETFs, with BlackRock and ARK accepting the cash redemption system rather than in-kind redemptions. ARK’s registration statement hinted that its ARK 21Shares Bitcoin ETF would only allow cash creations and redemptions, while BlackRock’s amendment stressed that in-kind transactions may take place but only subject to regulatory approval.

The SEC’s “cash-only” requirement means that authorized participants will only be able to obtain more shares of the ETF by bringing the appropriate amount of cash to the table. This requirement is understandable as it ensures transparency in terms of where the ETF gets its underlying Bitcoin from. The global ETF provider WisdomTree, however, has filed for an S-1 amendment to its spot Bitcoin ETF, keeping the in-kind creation and redemption option.

Overall, the move towards a cash redemption model for spot Bitcoin ETFs indicates that the SEC is not keen on allowing in-kind transfers. This decision will likely provide clarity and transparency in terms of the source of the ETF’s underlying Bitcoin. It remains to be seen whether these amendments will lead to the approval of spot Bitcoin ETFs in January.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	neutral
Relevance Score	1
People	Vance Harwood, Scott Johnsson, Cathie Wood, Eric Balchunas
Companies	BlackRock, WisdomTree, ARK Invest, Nasdaq Stock Market, U.S. Securities and Exchange Commission (SEC)
Currencies	Bitcoin
Securities	None