KEY POINTS
- BlackRock’s latest S-1 filing is the mention of iShares Bitcoin Trust’s market ticker IBIT for the first time
- The biggest alteration in BlackRock’s latest spot Bitcoin ETF S-1 amendment is the shift from the in-kind model to a cash creation and redemption model
- Bitcoin was trading in the green zone at $42,586.36 as of 12:31 p.m. ET on Tuesday
New York-based investment giant BlackRock submitted its amended spot Bitcoin exchange-traded fund (ETF) registration Monday, revealing several changes, including the alterations on the role of Coinbase–one of the world’s largest centralized crypto exchange platforms by trading volume– in its proposed crypto investment vehicle.
BlackRock’s latest amended iShares Bitcoin Trust S-1 form featured six major changes surrounding the management and operational structure of its Bitcoin and cash holdings.
Among this is the role of Coinbase, which is transitioned from its role as the Prime Broker to now the Prime Execution Agent.
A Prime Broker is a kind of central broker that generally facilitates and coordinates complex trading in a myriad of financial instruments.
A Prime Execution Agent, on the other hand, specializes in the execution of specific types of assets.
BlackRock’s decision to change Coinbase’s role from a prime broker to a prime execution agent may indicate possible alterations in the perceived responsibilities of Coinbase on the investment giant’s iShares Bitcoin Trust, its proposed spot Bitcoin ETF.
Another interesting addition to BlackRock’s latest filing is the mention of iShares Bitcoin Trust’s market ticker IBIT for the first time, suggesting that the fund plans to trade on the Nasdaq under the given label.
Previous spot Bitcoin ETF filings by the New York-based investment giant used a black field as a placeholder for its ticker.
Finally, the biggest alteration in BlackRock’s latest spot Bitcoin ETF S-1 amendment is the shift from the in-kind model to a cash creation and redemption model.
“The Trust issues and redeems Baskets on a continuous basis,” BlackRock’s latest S-1 filing read. “These transactions will take place in exchange for cash. Subject to the in-kind regulatory approval, these transactions may also take place in exchange for bitcoin.”
Blackrock first applied for its iShares Blockchain and Tech ETF in November, proposing the use of an in-kind redemption model. However, the major Wall Street regulator was critical of the said mechanism, raising concerns about investor safety and market manipulation.
Bitcoin, the world’s largest crypto asset by market capitalization, was trading in the green zone at $42,586.36 as of 12:31 p.m. ET on Tuesday with a 24-hour trading volume up by 0.15% at $23,844,214,853.
The latest price action represents a 2.64% spike in its value in the past 24 hours and a 3.1% gain over the last seven days.
Data from CoinMarketCap showed that Bitcoin’s current circulating supply stands at 19,574,662 BTC and its market cap is at $830,799,410,551.
