{"id":157306,"date":"2023-11-22T18:42:54","date_gmt":"2023-11-22T18:42:54","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=157306"},"modified":"2023-11-23T01:04:49","modified_gmt":"2023-11-23T01:04:49","slug":"blackrock-pushes-bitcoin-etf-advance-with-creation-in-kind-preference","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/blackrock-pushes-bitcoin-etf-advance-with-creation-in-kind-preference\/","title":{"rendered":"BlackRock Pushes Bitcoin ETF Advance with Creation-in-Kind Preference"},"content":{"rendered":"<p style=\"text-align: justify\">Financial giant BlackRock <strong>has taken a significant step toward creating its highly anticipated <a href=\"https:\/\/crypto-economy.com\/what-is-bitcoin\/\" target=\"_blank\" rel=\"noopener\">Bitcoin<\/a> exchange-traded fund<\/strong> (ETF) by re<strong>vealing its preference for an in-kind creation structure<\/strong> during its recent meeting with the US Securities and Exchange Commission (SEC).<\/p>\n<p style=\"text-align: justify\"><!--more--><\/p>\n<p style=\"text-align: justify\">The meeting with the SEC <strong>has shed light on BlackRock&#8217;s strategy<\/strong> for its <a href=\"https:\/\/www.sec.gov\/comments\/sr-nasdaq-2023-016\/srnasdaq2023016-301739-769762.pdf\" target=\"_blank\" rel=\"noopener\">proposed<\/a> Bitcoin ETF, highlighting<strong> its tilt toward in-kind creation rather than cash creation.<\/strong><\/p>\n<p style=\"text-align: justify\">This preference, revealed through slides presented during the meeting, <strong>suggests that BlackRock is seeking a cleaner and more transparent<\/strong> approach for both the company and end investors.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Looks like <a href=\"https:\/\/twitter.com\/BlackRock?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@BlackRock<\/a> also met with SEC! There\u2019s a couple slides in relation to in-kind vs cash creation. Based on this it looks like BlackRock prefers in-kind for their <a href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">#bitcoin<\/a> ETF (makes sense as its probably cleanest structure for them &amp; end investors) <br \/>h\/t <a href=\"https:\/\/twitter.com\/btcNLNico?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@btcNLNico<\/a> <a href=\"https:\/\/t.co\/AK0XspL4zJ\" target=\"_blank\">https:\/\/t.co\/AK0XspL4zJ<\/a> <a href=\"https:\/\/t.co\/eeuUT9T5mn\" target=\"_blank\">pic.twitter.com\/eeuUT9T5mn<\/a><\/p>\n<p>&mdash; James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1727341988436209903?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">November 22, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\">In-kind creation <strong>involves the ability to redeem ETF shares for physical Bitcoin<\/strong> instead of a cash equivalent.<\/p>\n<p style=\"text-align: justify\">This strategic choice <strong>could offer clarity on the fund&#8217;s underlying assets<\/strong>, an attractive move for investors seeking direct exposure to the cryptocurrency without having to deal with its custody.<\/p>\n<p style=\"text-align: justify\">The debate between in-kind and cash creation <strong>is fundamental for ETFs<\/strong>, as it defines how assets are managed and how investors can buy or sell their shares in the fund.<\/p>\n<h2>An attempt to offer a more efficient and transparent structure<\/h2>\n<p style=\"text-align: justify\">Despite this preference, reports suggest that the <strong>SEC could raise concerns about the need to include cash redemption options<\/strong> to avoid the use of unregistered brokers.<\/p>\n<p style=\"text-align: justify\">This suggests that BlackRock and the SEC <strong>could disagree<\/strong> on certain crucial details.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-157314 aligncenter\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/11\/BlackRock-ETF-SEc.jpg\" alt=\"BlackRock Opts for In-Kind Exchange for its Proposed Bitcoin ETF\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/11\/BlackRock-ETF-SEc.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/11\/BlackRock-ETF-SEc-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/11\/BlackRock-ETF-SEc-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\">This progress in discussions with the SEC shows that <strong>BlackRock is committed to the process of developing a Bitcoin ETF<\/strong> and is willing to work on the details necessary for its eventual launch.<\/p>\n<p style=\"text-align: justify\">The development of this product is highly anticipated as it is anticipated to <strong>attract considerable institutional investment to the <a href=\"https:\/\/crypto-economy.com\/blockchain-technology\/\" target=\"_blank\" rel=\"noopener\">cryptocurrency<\/a> market in the near future.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial giant BlackRock has taken a significant step toward creating its highly anticipated Bitcoin exchange-traded fund (ETF) by revealing its preference for an in-kind creation structure during its recent meeting with the US Securities and Exchange Commission (SEC).<\/p>\n","protected":false},"author":33,"featured_media":157315,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[4924,5001],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/157306"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=157306"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/157306\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/157315"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=157306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=157306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=157306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}