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The world's largest asset management firm, BlackRock, released details of its proposed spot bitcoin (BTC) exchange-traded fund (ETF), following a meeting with the U.S. Securities and Exchange Commission (SEC).


The meeting with the SEC focused on changing the rules for listing and trading shares of the BlackRock ETF, according to regulation 5711(d) of the Nasdaq stock exchange, according to a document from the regulatory agency.
This is because the company maintains that the fund should be able to be redeemed in "kind," according to the text. This means that when investors redeem their shares, they will receive bitcoin instead of cash, the company suggests.
According to Bloomberg analyst Eric Balchunas, BlackRock is advocating the use of in-kind swap for bitcoin ETFs because it believes it is better for investors as it will save them money on taxes.
The SEC, however, has said that it prefers bitcoin ETFs to be redeemed for cash. This means that when investors redeem their shares, they will receive cash instead of bitcoin. The regulator believes it is more favorable because it will help prevent investors from using unregistered exchanges.
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