SEC Postpones Decision on BlackRock Bitcoin ETF 'Spot Settlement'… Invites Public Input

# SEC Delays Decision on BlackRock's Bitcoin (BTC) ETF Redemption Structure The U.S. Securities and Exchange Commission (SEC) has delayed its decision on BlackRock's proposed “in-kind redemption” mechanism for its Bitcoin (BTC) exchange-traded fund (ETF). The agency will also seek public comments on the proposal. In a statement on May 13, the SEC highlighted the need to scrutinize the impact of the in-kind redemption structure on the market. “We require further review of the potential market implications of this redemption mechanism and plan to gather input from market participants,” the regulator stated. BlackRock’s proposal would allow the redemption of its spot Bitcoin (BTC) ETF not in cash but in the cryptocurrency itself. The in-kind redemption model enables Authorized Participants (APs) to redeem ETF shares directly for Bitcoin rather than cash. Market analysts suggest that, if approved, BlackRock’s ETF proposal could significantly reshape the ETF ecosystem. While the mechanism may enhance trading efficiency compared to cash redemption, concerns persist over regulatory challenges, including asset custody and anti-money laundering (AML) compliance. # SEC Also Delays Reviews for Solana, Dogecoin ETFs On the same day, the SEC announced similar postponements for other cryptocurrency ETF proposals, including Grayscale's Litecoin (LTC) Trust and Solana (SOL) Trust, as well as 21Shares’ Dogecoin (DOGE) ETF. The agency will also seek public comments on these applications. These decisions reflect a potentially more flexible approach by the SEC toward cryptocurrency ETFs. Since the Trump administration, the SEC has settled certain lawsuits against cryptocurrency firms and has engaged in industry discussions to explore regulatory strategies. New SEC Chair Paul Atkins hinted at this evolving perspective during a cryptocurrency-focused roundtable held the previous day. “The SEC’s traditional approach has been overly rigid,” Atkins remarked. “We are committed to exploring more pragmatic regulatory pathways moving forward.” The broader industry awaits the outcomes of these reviews, as any approval could mark a significant shift in how the SEC handles digital asset investment products.