BlackRock's<\/a> share redemption model. The initial proposal involved a T+1 settlement, starting with a broker-dealer delivering IBTC shares to a transfer agent. The issuer would then instruct the custodian (Coinbase Custody) to send Bitcoin backing the shares to a crypto market maker, who would close a short Bitcoin position.<\/p>\n\n\n\nThe T+1 redemption process aligns with the SEC's newly approved rules mandating stock and ETF settlements within one business day, effective late May 2024. The updated settlement approach suggested by BlackRock initiates redemption orders with cryptocurrency market makers providing cash to the broker-dealer, streamlining the process before large Wall Street banks (authorized participants) become involved.<\/p>\n\n\n\n
While BlackRock did not provide explicit details, it claimed that this new method enhances resistance to market manipulation, which addresses the SEC's primary concern. It also aims to simplify and harmonize the ecosystem.<\/p>\n\n\n\n
For many major financial institutions, custody of digital assets often involves third-party firms. The revised redemption process would likely encourage more institutional investment in the Bitcoin ETF by making share redemption faster and less risky for these entities that manage substantial assets for clients.<\/p>\n","post_title":"BlackRock Bitcoin ETF's Outline Market Manipulation Control","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"blackrock-bitcoin-etfs-outline-market-manipulation-control","to_ping":"","pinged":"","post_modified":"2023-12-15 19:46:17","post_modified_gmt":"2023-12-15 08:46:17","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=14629","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":4446,"post_author":"1","post_date":"2022-04-20 20:11:31","post_date_gmt":"2022-04-20 10:11:31","post_content":"\n
Cosmos Asset Management\u2019s Bitcoin ETF will be listed on the Cboe Equities Trading Venue next week on the 27th of April, Australian Financial Review (AFR)\u00a0reported<\/a>. This marks the first Bitcoin ETF to be released from Australia.<\/p>\n\n\n\n- ASX Clear\u00a0(the clearing house for Australian capital markets) has 4 market participants willing to stump the tough 42% margins needed to cover settlement risks.<\/li><\/ul>\n\n\n\n
- A notice period of 7 days has been issued. The ASX Clears regulatory approval period gives brokers and investors time to prepare for the new listing.<\/li><\/ul>\n\n\n\n
