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BlackRock files with SEC for Bitcoin spot ETF under the ticker "IBIT"

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BlackRock files with SEC for Bitcoin spot ETF under the ticker "IBIT"

The world's largest asset management company, BlackRock, recently submitted a new filing to the Securities and Exchange Commission (SEC) on 12/18, indicating that the formal name code is "IBIT."

Further Confirmation: IBIT Ticker Symbol Confirmed

BlackRock and Fidelity's spot Bitcoin ETF has recently confirmed its trading symbol as "IBIT." This significant development was made public in the amended S-1 filing submitted to the SEC earlier this week.

Key Takeaways: SEC and BlackRock Establish Cash Mode

In the latest filing, BlackRock introduced new designs regarding fund creation and redemption mechanisms, which is particularly noteworthy.

It is understood that BlackRock aims to adopt an "in-kind creation" model to enhance the flexibility of managing investment portfolios.

However, the SEC prefers the so-called "cash" model, which requires BlackRock to take Bitcoin out of reserves, sell it immediately when investors want to redeem shares, and then return the cash to the investors.

ETF analysts state that the decision to use the cash model is basically settled.

Fidelity's Bitcoin spot ETF Process Flow: Understanding the SEC's focus on the physical operation model

ETF Theme Brings Bitcoin Spring in 2023

As BlackRock, Fidelity, Ark 21Shares, and WisdomTree negotiate with the SEC on the creation and redemption process of Bitcoin spot ETFs in the weeks ahead, market optimism for the approval of such funds is evident.

This optimism has had a positive impact on the price of Bitcoin. Since BlackRock began applying for a Bitcoin spot ETF in late 2023, with multiple ETF firms simultaneously following up with the SEC for negotiations, the price of Bitcoin has been on the rise. Whether it will be approved will be revealed in January next year. The SEC is actively meeting with BlackRock and others, still optimistic about the 1/10 approval deadline.