Prolly nothing... https://www.forbes.com/sites/digita...amped-spot-bitcoin-etf-model/?sh=262b3b0b259f BlackRock's Revamped Spot Bitcoin ETF Model Susie Violet Ward Contributor Bitcoin Journalist and Financial Analyst. Dec 13, 2023,03:03am EST BlackRock has revised its spot bitcoin exchange-traded fund, altering how Wall Street banks engage with bitcoin. The model, presented to the U.S. Securities Exchange Commission in November, is designed to enable major financial institutions like JPMorgan and Goldman Sachs to participate more easily in the bitcoin market, despite regulatory restrictions preventing them from holding bitcoin directly. The cornerstone of this revised ETF is the in-kind redemption “prepay” model. It allows banks to create new ETF shares using cash rather than bitcoin. This shift in methodology is pivotal in transferring risk from authorized participants to market makers, thereby bolstering the ETF's stability. A key aspect of BlackRock'sBLK +1.9% proposal is its strong defense against market manipulation, addressing a long-standing SEC concern regarding bitcoin ETFs. This model is tailored to enhance investor protection, reduce transaction costs, and streamline operations. If approved by the SEC, BlackRock’s ETF model will mark a significant shift for banks, enabling them to indirectly engage with the bitcoin market. This represents a major change in traditional financial institutions' approach towards bitcoin and could open up new investment avenues. In the broader context, BlackRock's scenario is part of a larger picture where firms like Grayscale, Bitwise, and Fidelity are also awaiting SEC decisions on their bitcoin ETF applications. These discussions focus on various redemption models, aiming to balance risk management with investor protection.
Dec 2017 and Nov 2021 to repeat between Nov-Dec 2024 Those expecting BTC to go supernova will get caught with their pants down again.
I'm not sure I understand this part. What does it mean to create shares with cash? Meaning the ETF doesn't need to yet own the bitcoin, but collects cash and then goes into the market and buys it? How can you accept cash, but not have the bitcoin yet? Maybe when you realize you need to buy 10k bitcoins, there won't be enough at that price. It sounds like a store selling an item they don't have in stock yet but are happy to take your money.
I think it's more on the buyers' (banks mentioned in the article) that US regulations have specific restrictions they are not allowed to buy bitcoins But there is a loophole (of course there is always a loophole for the elites) that Blackrock has setup specially for them to utilize a pre-paid option Sounds like a gift card option, lol Anyway, I don't know anything about it, but that's how I understood the article. US banks are not allowed to buy bitcoins, but now they are
I just saw this message thread which talks about this issue and it's even weirder than I thought. Can you imagine having to pay taxes on an ETF that you haven't even sold? The poster also states that this isn't how GLD works. So it almost seems like the SEC wants to cripple this ETF in some way. For those people interested, click on the link and also the follow-up questions and answers.