BlackRock Updates Spot Bitcoin ETF Proposal, Introduces 'IBIT' Ticker

By: Eliza Bennet

Global investment management firm, BlackRock, has announced changes to its spot Bitcoin ETF proposal recently. According to the updated document, the firm now intends to use 'IBIT' as the market ticker and trade on the Nasdaq. This change comes after the previous placeholder for the ticker was left empty.

An interesting change revealed in the new amendment is BlackRock's adoption of an initial cash model. Earlier filings stated the trust would handle operations with 40,000 blocks of shares referred to as "baskets" using Bitcoin. However, the latest filing indicates an exchange for cash will carry out these transactions. The proposal also stipulates that if regulatory approval is achieved, the trust may also conduct in-kind creations and redemptions with Bitcoin.

BlackRock's updated ETF proposal additionally showcases minor additions related to risk provisions and details concerning its relationship with its cash custodian, the Bank of New York Mellon, and the Bitcoin custodian, Coinbase Custody. Despite SEC's current stance on approving Bitcoin ETF, there are strong expectations in the industry for approval of this kind of proposal by 2024.