[12/19/23] Spot Bitcoin ETFs Move Along Application Process

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WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES

A novel spot bitcoin ETF approval has the potential to transform the cryptocurrency landscape—and is likely coming in early 2024. The Securities and Exchange Commission continues to meet with firms like Fidelity, Grayscale and BlackRock to move their applications forward, according to memos.

One issue that is reportedly being debated among the various firms and the agency is whether the spot bitcoin ETFs will use cash or in-kind redemption mechanisms. On Nov. 28, BlackRock presented its revised in-kind redemption model to the agency.

“During our 11/20 meeting with Trading & Markets staff, we understood the SEC has certain unresolved questions around the in-kind model relating to balance sheet impacts and risks,” BlackRock wrote. Yet the SEC seems partial to cash, which could make the product more expensive for retail investors.

While spot bitcoin ETFs are dominating headlines, there are other launches to watch. One, the BlackRock Total Return ETF (BRTR), uses investing in fixed-income securities across multiple sectors. The fund will be managed by Rick Rieder, BlackRock’s chief investment officer of global fixed income.

Defiance ETFs, the thematic issuer with over a billion under management, also launched the first Israel-focused fixed income ETF last week.

By Lucy Brewster

Below is a roundup of the key developments in the ETF industry during the week ending Dec. 8, 2023:????

BlackRock Launches Total Return Active ETF BlackRock bond chief Rick Rieder's BRTR ETF was listed on the Nasdaq.

First Israel-Focused Bond ETF Launches The fund from Defiance ETFs provides exposure to Israeli government and corporate bonds.

SEC’s Peirce: Spot Bitcoin ETF is Past Due The agency “needs to change its attitude” on all things crypto, Peirce said Thursday.

Goldman Sachs Closes Climate ETF as Investors Flee ESG The ETF closed after it failed to garner significant inflows.

BlackRock, Fidelity Discuss Spot Bitcoin ETF with SEC The firms, among others, are hashing out the details of the funds.

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