According to one Friday Submit to the US Securities and Exchange Commission (SEC).
This process allows large institutional investors called authorized participants (APs) to purchase the fund’s stock directly and exchange to Bitcoin (BTC).
It is considered more effective because it allows AP to closely monitor the demand for ETFs and act quickly by purchasing or selling stocks of the fund without participating in the cash of the process. Fore investors are not qualified to participate.
When SEC first approved the spot Bitcoin ETF, including the spot of IBit last year, the agency allowed cash to redemption instead of Bitcoin to launch funds.
James SEYFFART (James Seyffart Write on XEssence “Mainly (they) do not want the agent to touch the actual bitcoin.”
BLACKROCK’s IBIT is the largest BTC ETF in the market, attract Nearly 40 billion US dollars in the first year made it the first time that the most successful ETF ever appeared in history.
