SEC's Cash-Only Model Prompts BlackRock and ARK to Revise Bitcoin ETF Plans

BlackRock and ARK Invest have revised their filings for a Bitcoin exchange-traded fund (ETF) in the United States to comply with the cash redemption model required by the Securities and Exchange Commission (SEC). The amendments relate to the creation and redemption of shares, with both firms accepting the cash redemption system instead of in-kind redemptions involving non-monetary payments like Bitcoin. The SEC's "cash-only" requirement means that authorized participants will only be able to obtain more shares of the ETF by bringing cash to the table. Other ETF applicants, including WisdomTree, have also made amendments to their filings to accommodate the cash redemption model.