BlackRock's amended custody proposal emphasizes security by holding all private keys associated with the fund's Bitcoin in cold storage, making them more resistant to hacking. The changes also introduce a more complex structure for creating baskets, incorporating a mix of cash and Bitcoin depending on market conditions. Similarly, the firm shifted from a Bitcoin-based redemption model to cash redemptions to align with the SEC's requirements. BlackRock has also revised its approach to managing AML risks by enforcing strict compliance for all involved parties in Bitcoin transactions.
BlackRock is making changes to its Bitcoin ETF application to meet the SEC's requirements, emphasizing security by holding all private keys in cold storage and introducing a more dynamic basket creation model. Additionally, the firm is shifting from a Bitcoin-based redemption model to cash redemptions and enforcing strict AML compliance for all involved parties.