A new SEC application from the asset manager Blackrock recently attracted attention. This should enable more direct processing of ETF shares in Bitcoin.
• Optimistic prospects despite the bumpy start of the year
• Blackrock requested change from Bitcoin ETFs
• Bitcoin ETFs could become more efficient
Black skirt with a turbulent start of the year: optimistic view
While at the turn of the year for the Bitcoin ETF from Blackrock, the crypto hope remains high. In the week before Christmas, the ETF recorded net drains of $ 20 million, while in the New Year’s week even $ 140 million were deducted, as Farside data show. The reason for this was investors who re -host their portfolios at the beginning of the year or realize profits.
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When President Donald Trump took office, there were considerable capital inflows for crypto ETFs, especially Bitcoin ETFs. According to cointelegraph, over $ 1.76 billion flowed into these investment products within the first week. The Blackrock Bitcoin ETF, which received $ 155.7 million in new investments within just 24 hours, was particularly striking. In contrast, however, Ethereum remained behind the expectations and was only able to record $ 139.4 million in traces.
In the future, too, there should be positive views for crypto ETFs such as those of Blackrock. This assumes that crypto ETFs should benefit from the new government of US President Donald Trump.
Blackrock requested change for Bitcoin ETF
Most recently, Blackrock drew attention to himself through a SEC application to enable so-called “in-child BTC Redemption” for his Bitcoin ETF.
According to Bloomberg analyst James Seyffart, who divided the Nasdaq application to X, this change would allow authorized participants (APS) to redeem ETF shares directly in Bitcoin instead of going through a fiat transaction through intermediate traders.
New: Blackrock/Ishares Just Files to Allow In-Kind Creation and Redemption on their Bitcoin ETF $ IBIT pic.twitter.com/hy0tiek81h
– James Seyffart (@jseyff) January 24, 2025
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The new factual value process would simplify the output and withdrawal of ETF shares and reduce the number of intermediate traders, as BTC-ECHO explains. However, this function would only be reserved for institutional investors, while private investors would continue to be dependent on conventional paths.
If the SEC approves the change, this could bring advantages such as a higher tax efficiency, better price adjustment to the Bitcoin market value and an optimized transaction process.
The application is well received by experts and the crypto industry. Seyffart explains: “This is not so important for the individual small investor. Above all, the change means that the stock market -traded funds should act even more efficiently because conversions would be optimized. In my opinion, one should have allowed the ETFs from the beginning, but the Democrats among the Sec Commissioners were against it. ”
“BTC ETFs become more efficient like European ETPs. Authorized participants can now create and redeem directly with Bitcoin instead of just with cash,” said Kryptoanalyst Tom Wan according to leg crypto.
Thomas Jeegers, Chief Financial Officer (CFO) at relay also explains according to BTC-Echo: “Step by step, the traditional financial system adapts to the rules of Bitcoin, not the other way round”.
Further consequences with similar applications
Following the example of Blackrock, the CBOE BZX Exchange recently submitted an application to the SEC to change the ARK 21shares Bitcoin ETF (ARKB) and the 21shares Core Ethereum ETF (Ceth) so that the output and withdrawal of property is possible .
The 19b-4 application submitted on January 27 stipulates that the creation and withdrawal of ETF shares is only made possible by authorized participants (APS) as part of a real value procedure.
It remains to be seen whether the applications will be granted.
Editor finance.net
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