Bitcoin ETF Preparations Shift Into Overdrive As Bitwise Launches An ETF Ad, BlackRock Enables Cash Redemption And Its BTC ETF Gets A Ticker

BySteven Walgenbach

Updated: 19 December 2023

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Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

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Fund managers shifted preparations for the launch of spot Bitcoin ETFs (exchange-traded funds) into overdrive as Bitwise launched the first ETF advertisement, BlackRock tweaked its application to allow cash redemptions and named a ticker for its BTC ETF.

Bitwise Asset Management unveiled its ad on Dec. 18 featuring actor Jonathan Goldsmith, best known as the “Most Interesting Man in the World” in Dos Equis beer commercials. .

“You Know what’s interesting these days?” he says in the short commercial. “Bitcoin.”

A word to the wise, from a man of few words. #bitcoinisinteresting https://t.co/wantGiAIqJ pic.twitter.com/x5MPbElEev

— Bitwise (@BitwiseInvest) December 18, 2023

The advertisement shows growing confidence among leading fund managers that the Securities and Exchange Commission (SEC) is about to approve spot Bitcoin ETFs.

Investor Bob Loukas wrote on X that the level of discussions that are ongoing between regulators and fund managers shows that spot Bitcoin ETFs are ”a 99.9% done deal.”

The level of SEC engagement and back/forth/changes on the #bitcoin ETF tells us this is a 99.9% done deal. https://t.co/ZvBFb43C4c

— Bob Loukas 🗽 (@BobLoukas) December 18, 2023

BlackRock’s Bitcoin ETF To Use SEC-Preferred Cash Redemption Model

Fund management titan BlackRock also moved a step closer to the launch of its spot Bitcoin ETF when it said on Dec. 18 that it will implement cash creation and redemption mechanisms for investors, an arrangement preferred by the SEC.

The amendment still left room for the implementation of an in-kind mechanism in future, which is subject to regulatory approval.

BlackRock has gone cash only. That’s basically a wrap. Debate over. In-kind will have to wait. It’s all about getting ducks in row bf holidays. Good sign. https://t.co/vgocs1aIwS

— Eric Balchunas (@EricBalchunas) December 19, 2023

BlackRock is the latest of a number of firms to agree to issue cash redemptions until in-kind redemptions receive approval from the SEC. ARK 21Shares has also published a revised S-1 form with a similar change.

BlackRock had initially proposed an in-kind redemption model. The SEC scrutinized this proposal and raised concerns about investor safety and market manipulation.

These concerns seem to have been addressed now as BlackRock’s spot Bitcoin ETF was christened with the ticker IBIT on Dec. 18, according to an amended S-1 filing.