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Cash Redemption Model

All articles tagged with #cash redemption model

cryptocurrency2 years ago•2 min saved

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.

via Cointelegraph|

#ark-invest #bitcoin-etf #blackrock

cryptocurrency2 years ago•2 min saved

"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.

via Cointelegraph|

#bitcoin #cash-redemption-model #cryptocurrency