SEC Begins Discussion on BlackRock's Bitcoin: Decisions on Solana, Litecoin, and DOGE Delayed!!

The U.S. Securities and Exchange Commission (SEC) has started gathering opinions on whether to allow BlackRock's Bitcoin (BTC) ETF to use an “in-kind” or asset-based redemption model.

According to an official document published on Tuesday, the SEC has delayed its decision on whether BlackRock's iShares Bitcoin Trust can use the “in-kind” redemption method and has sought public input. According to a proposal submitted by Nasdaq in January, investors may buy and sell ETF shares directly in Bitcoin instead of cash. This method could replace the SEC's preferred model, which requires Bitcoin to be taken out of storage and immediately converted to cash for delivery to investors.

Many Bitcoin ETFs, including BlackRock's, had started trading in January 2024. The technical details of these ETFs have been under review by the SEC for a long time. Bloomberg Intelligence ETF analyst James Seyffart indicated that if the “in-kind” model is approved, the ETFs could trade much more efficiently.

SEC Delays on Solana and Dogecoin ETFs

The SEC also delayed the ETF proposals submitted for Grayscale Litecoin Trust and Grayscale Solana Trust and sought public feedback on these projects. Similarly, it delayed 21Shares’ Dogecoin (DOGE) ETF proposal and requested comments on this matter as well.

New SEC Chairman Paul Atkins, who took office under President Donald Trump, is making the agency's stance towards the cryptocurrency sector more friendly. Atkins introduced the SEC's new regulatory vision for cryptocurrencies during a roundtable meeting on Monday and criticized the previous administration's approach. Under Atkins' leadership, the SEC is expected to take a more positive stance towards crypto ETFs.