The Latest Breaking News from Eric Balchunas

BlackRock had two choices for its spot Bitcoin ETF application – give in to the SEC's preferred model or wait until the regulator approves in-kind redemption.

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.

The recent development suggests that the SEC could be ironing out details before finally approving some spot Bitcoin ETF applications.

After BlackRock submitted another amended prospectus last week, VanEck followed suit with its fifth amendment, showing a unique Bitcoin ETF ticker, HODL.

While BlackRock's Bitcoin ETF listing pushed the value of Bitcoin to a new high, Fidelity's listing did not have the same impact on the price of the "king of crypto."

The ongoing discussions include "substantive details, some of which are usually discussed near the end of an ETF application process," a report has claimed.

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.