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The BlackRock iShares spot Bitcoin ETF could be in jeopardy as there is an apparent disagreement between the company and the US Securities and Exchange Commission regarding the fundamentals of the ETF.
Eric Balchunas, a senior ETF analyst for Bloomberg, revealed that BlackRock remains firm on wanting an in-kind redemption model, whereas the SEC considers in-cash redemption to be the superior model. According to Balchunas’s insider sources, the Commission informed BlackRock that it needs to agree to the in-cash model, or risk a delay in the Bitcoin ETF approval.
The Bitcoin price, along with the rest of the crypto market, has been displaying extreme bullishness over the past month due to the belief that the SEC’s nod on a spot Bitcoin ETF approval is imminent. Any shake-up in that belief or even some FUD could trigger a massive sell-off in the market.
Consequently, the latest news of rising tensions between BlackRock and the SEC makes it hard for investors to position themselves in the market.
However, a new cryptocurrency – Bitcoin ETF Token ($BTCETF) – makes investor decision-making much easier, considering that it is fully aligned with the Bitcoin ETF market.
The project will track the BTC ETFs and reward its investors as and when certain set milestones are hit. Even in the case of a price fluctuation due to a potential delay or FUD, they can continue to earn staking rewards and generate passive income. This rewards-based tokenomics has piqued the interest of investors, with the token quickly raising over $1.5 million in its ICO.
Why BlackRock ETF Could Be Delayed And How Can $BTCETF Help?
BlackRock – the largest asset-management company in the world – has a stellar track record when it comes to gaining the SEC’s green-light, getting all but one of its ETFs approved.
However, the two parties are locking horns in regards to its spot Bitcoin ETF application. BlackRock is pushing for the in-kind redemption model, which Balchunas believes is better for investors and the issuer for the purpose of spread and taxes.
Meanwhile, the SEC has informed the issuer that it prefers the in-cash model, which prevents investors from using an unregistered broker.
BlackRock is not the only issuer tussling with the SEC on this matter. ARK Invest is also trying to convince the Commission to approve its in-kind model Bitcoin ETF. However, there is no indication that it has made any progress.
The difference of opinion between the issuers and the SEC is surprising, with Balchunas calling it a “subplot in a never-ending drama”. So far, the issuers have been extremely open to amending their filings after receiving comments from the SEC. Just last week, ARK Invest re-filed an amended version of its S-1 prospectus. However, it did not amend its 19b-4 filing, which is where it has proposed its in-kind model.
In the case of a possible delay, investors who are currently holding long positions on Bitcoin could suffer heavy losses. However, $BTCETF investors could stake their tokens and earn staking rewards, right from the presale itself, irrespective of the broader market outlook. Its staking pool is currently offering an APY of 162%, much higher than the industry-standard.
Earn Rewards With Bitcoin ETF Token When The ETFs Are Approved
The new Bitcoin ETF Token project, like the rest of the market, remains confident that the SEC will approve all ETF applications at the very start of the next year. Even Eric Balchunas has not budged from his long-held stance that a spot Bitcoin ETF approval is 90% likely.
$BTCETF investors will be rewarded in such a scenario as well. The project has designated 5 key milestones at which it will burn 5% of its token supply to create a deflationary effect and potentially boost the token’s value.
The first milestone will be achieved when $BTCETF reaches a daily trading volume of $100 million, which will signify a high user adoption of its novel concept. The second and the third milestones will be completed when the first Bitcoin ETF is approved and on the day it launches in the market, respectively.
The project also believes that the approved ETFs will have a positive impact on the Bitcoin price. Therefore, its fourth and fifth milestones will be achieved when the ETFs have a cumulative asset-under-management of $1 billion and when BTC hits $100k, respectively.
Aside from the token burns, the transaction tax – which is set to be 5% at the start of the token’s trading – will also be reduced by 1% at each milestone. Therefore, by the time all 5 milestones are achieved, the Bitcoin ETF Token would have burned 25% of its token supply and reduced its transaction tax to 0.
The project’s innovative concept of harnessing the ongoing ETF hype has already paid dividends in the presale. Furthermore, crypto traders such as Jacob Bury and Matthew Perry are bullish on the token’s price potential, with Bury believing that it could display a 10x bull rally after its launch.
