BlackRock Makes Key Changes to Bitcoin ETF Ahead of Expected Launch – Decrypt

BlackRock Makes Key Changes to Bitcoin ETF Ahead of Expected Launch – Decrypt:

BlackRock has assigned a new ticker for its iShares Bitcoin Trust: IBIT. The amendment was filed with the SEC, revealing that the ETF will now be cash-only instead of being created with Bitcoin. This change was anticipated after meetings between BlackRock, Nasdaq executives, and the SEC, which raised concerns about the use of Bitcoin by registered brokers.

The SEC’s reluctance to approve in-kind creation of shares led BlackRock to switch to cash, signaling a positive direction for the company. The move also supports market analysts’ expectations of the SEC approving the first Bitcoin ETF in the U.S.

It was initially thought that the iShares Bitcoin Trust would trade under the ticker IBTC, as it appeared on a DTCC list. However, it seems BlackRock is already using IBTC for a product in Europe, leading to the selection of IBIT as the new ticker.

The history of Bitcoin ETFs in the U.S. is marked by delays and discussions with the SEC about the volatility and potential manipulation in crypto markets. Despite prior setbacks, there are signs of progress, with market observers anticipating significant capital inflows into crypto when approved.

While IBIT was previously used by a different ETF, the decision to recycle it aligns with BlackRock’s European products. Ultimately, the new ticker reflects the continued anticipation and developments in the realm of Bitcoin ETFs.