The Latest Breaking News from Eric Balchunas

In its recent filing, the spot Bitcoin ETF registration underlined that it will only use cash creations in response to the SEC's instruction to use the cash redemption model.

BlackRock once again sat with some SEC officials — something it appears to have been doing regularly over the past weeks as anticipation for the possible SEC decision on spot Bitcoin ETF applications heightens.

Industry experts and ETF analysts scrutinized the amended prospectus and discovered that BlackRock had seeded its ETF on Oct. 27. It was the same month when the crypto community found the Bitcoin ETF ticker of the firm listed on the website of the Depository Trust and Clearing Corporation.

While the act is viewed as operational or part of the process before its launch, for some, it is a positive indication that the U.S. will have a spot Bitcoin ETF very soon.

On the eve of the potential approval of multiple spot Bitcoin ETF filings, rumor has it that the major issue now concerns whether the SEC would allow in-kind creations.

However, Bitcoin's latest move also caused $190 million worth of liquidated derivates, $150 million of which was in short positions.

The recent COIN share sale by ARK's Fintech Innovation exchange-traded fund (ETF) is the biggest since July 25, 2023, when the ARK Next Generation Internet ETF sold over 53,000 COIN shares.

Bloomberg Intelligence ETF analysts predict that there is a 90% likelihood that the U.S. Securities and Exchange Commission will approve the much-awaited spot Bitcoin ETF applications by Jan. 10.

With BlackRock's revised in-kind model proposal, it remains to be seen if the SEC would change its mind.