SEC Delays Decision! BlackRock’s Bitcoin ETF Redemption Still Possible?  

TradingKey – The SEC has postponed its ruling on BlackRock’s Bitcoin (BTC) ETF physical redemption, but approval remains a possibility in the future.  

On Tuesday (U.S. Eastern Time), the U.S. Securities and Exchange Commission (SEC) delayed its decision on whether BlackRock’s Bitcoin (BTC)  ETF can offer physical redemption and has opened a public comment period. In an official statement, the SEC said:  "The Commission is initiating proceedings under Section 19(b)(2)(B) of the Securities Exchange Act to determine whether to approve or disapprove the proposed rule change."

As long as the SEC does not approve the application, BlackRock’s ETF will continue using a cash redemption model, meaning it will sell Bitcoin and return cash to investors. However, if physical redemption is approved, investors could receive Bitcoin directly without the need to sell assets.  

James Seyffart, Bloomberg’s ETF analyst, stated:  "If approved, the ETF's trading efficiency could improve."

Additionally, during market downturns, a physical redemption model may help reduce selling pressure, allowing investors to decide when to sell instead of forced liquidation into cash.  

At this stage, the SEC’s decision is only a delay, not a rejection, meaning future approval remains possible—especially as the U.S. continues to push for global leadership in cryptocurrency markets.