Bloomberg analyst: BlackRock has reportedly met with the SEC to discuss the structure of a Bitcoin ETF, preferring a physical redemption method

ChainCatcher news, Bloomberg analyst James Seyffart pointed out on social media that BlackRock seems to have had discussions with the U.S. Securities and Exchange Commission (SEC). The focus of the discussion was on the impact of in-kind versus cash creation redemption models on their planned Bitcoin ETF product.

The shared slide materials indicate that BlackRock prefers the in-kind redemption method, which is considered the clearest and most effective approach for them and the ultimate investors. This model allows ETF issuers to handle redemptions by distributing or receiving physical assets instead of cash, which may be more advantageous in terms of asset management and tax treatment.