BlackRock engaged in discussions with the U.S. Securities and Exchange Commission (SEC) on Monday regarding its upcoming Bitcoin ETF, according to information disclosed in a memo from the regulatory body. The meeting brought together 8 members from the SEC's Division of Trading and Markets, 7 representatives from BlackRock, and 4 representatives from the NASDAQ Stock Market.

The primary focus was on the proposed rule change by NASDAQ to list and trade iShares Bitcoin Trust shares. While the specific details of the meeting were not provided, BlackRock presented slides outlining potential "redemption models" for iShares Bitcoin Trust shares, exploring both "in-kind" and "in-cash" redemption methods. The SEC has been engaging with various ETF sponsors, including Grayscale, this week.

Analysts suggest that cash redemptions might offer a more straightforward process for ETF issuers, which could impact SEC approval decisions. The final deadline for Ark/21Shares' Bitcoin ETF approval or denial is January 10, with Bloomberg ETF analyst Eric Balchunas estimating a 90% chance of approval.