In an attempt to satisfy regulators and improve its chances of obtaining approval, BlackRock (BLK) has submitted a revised proposal for a bitcoin (BTC) exchange-traded fund (ETF). This move comes as speculation mounts that the Securities and Exchange Commission (SEC) may approve a number of spot bitcoin ETF applications as early as January.

The updated proposal from BlackRock incorporates cash creation and redemption mechanisms, which align with the preferred model of the SEC. By adopting this approach, the world’s largest asset manager aims to address the concerns raised by the SEC regarding investor safety and market manipulation. Previously, BlackRock had proposed an in-kind redemption model when it initially applied for its iShares Blockchain and Tech ETF last month.

Typically, ETFs offer either in-kind or cash redemption and creation mechanisms. The in-kind redemption structure allows firms to redeem shares for bitcoin held by their ETFs, while cash redemptions replace shares with their equivalent cash value. Although many firms find the in-kind redemption model more appealing to investors, the SEC considers cash redemptions to be a safer and more accessible option.

Following suit with other firms, BlackRock has agreed to implement cash redemptions until in-kind redemptions receive approval. Numerous companies have already submitted ETF applications, and ARK 21Shares has also revised its S-1 with a similar change.

The SEC has postponed the review of several ETF applications from Grayscale, ARK 21Shares, VanEck, and Hashdex.