© Reuters
In a move aimed at boosting investor interest in cryptocurrency funds, BlackRock, the world’s largest asset manager, has refined its proposal for a Spot Exchange Traded Fund (ETF) in kind. The revised proposal, which was presented to the Securities and Exchange Commission (SEC) and Nasdaq officials on Monday, seeks to allow direct trading of Bitcoin (BTC) instead of relying on futures contracts as Cash-based ETFs.
This update to the ETF model aims to address the SEC’s persistent preference for cash-oriented Bitcoin spot ETFs. Despite BlackRock’s efforts to offer a product that allows investors to physically trade Bitcoin, the SEC has historically been cautious about approving ETFs tied directly to the volatile cryptocurrency market dynamic.
The initial proposal for an in-kind Bitcoin Spot ETF was presented to the SEC on November 20. The latest refined version from BlackRock comes after receiving feedback from the SEC staff, showing the custodian’s commitment asset management in compliance with regulatory standards while serving the growing demand for cryptocurrency investment vehicles.
As the market awaits the SEC’s response to this new model, BlackRock’s push for innovation in the ETF space reflects continued interest in integrating digital assets into traditional investment portfolios . The outcome of this proposal could signal a significant change in how investors can engage with Bitcoin through regulated financial products.
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