"BlackRock's Bitcoin ETF: Shifting Risk to Crypto Market Makers, Not Banks"

The United States Securities and Exchange Commission (SEC) is demanding a "cash" redemption model for spot Bitcoin exchange-traded funds (ETFs), rather than the alternative "in-kind" model proposed by some issuers like BlackRock. Invesco and Galaxy have recently updated their filings to comply with the SEC's requirement for a cash creation and redemption model. The cash model is seen as less efficient but provides more flexibility for fund participants. The SEC's stance on cash redemption models suggests that other applicants will also have to adopt this approach. The SEC has delayed its decision on a spot Ether ETF and representatives from various asset managers have been meeting with the SEC to finalize details for their spot BTC products.