Proponents of spot Bitcoin ETFs have discussed, with the Securities and Exchanges Commission (SEC), which redemption model to pick. While institutions seem to favor an ‘in-kind’ redemption, the SEC signals a preference for a ‘cash-only’ model.
Notably, BlackRock Inc. (NYSE: BLK) employees met with the authorities on November 28, according to a TheBlock report. In this meeting, the company presented a plan for what it called a ‘Revised In-Kind’ redemption model.
Essentially, the revised proposal would give all parties more flexibility for investors to redeem their ETF share worth. This model also offers tax advantages for BlackRock’s iShares and its custodian, Coinbase.
However, the SEC has signaled an adversary position for that possibility, favoring redemptions exclusively in ‘cash.’
Spot Bitcoin ETF redemption models: ‘in-kind’ or ‘cash-only’
At its core, the redemption models define what investors will receive when they disinvest from the fund. Redemption o
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