TechFlow reported, according to CoinDesk, BlackRock has recently adjusted the mechanism of its proposed spot Bitcoin (BTC) ETF, allowing authorized participants to create new fund shares using cash instead of only cryptocurrency.
Since heavily regulated U.S. banks are unable to hold Bitcoin, this setup would enable companies like JPMorgan Chase and Goldman Sachs—possessing some of the world's largest balance sheets—to act as authorized participants for the ETF.
The cash used in this process can be converted into Bitcoin through intermediaries and then held by the ETF's custodian provider.
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