The memo shows that asset managers BlackRock and Fidelity, among others, have met with the U.S. SEC in the past few weeks to discuss the redemption process for Bitcoin spot ETFs. The issue discussed lies in three separate models (cash/in-kind/revised in-kind redemption model) to determine which entity must sell Bitcoin if an investor wants to redeem a share of the underlying asset. Vivian Fang, a professor of finance at Indiana University, said that from an investor's perspective, there is no difference between the cash model and the revised physical model. Regardless of which model is adopted, investors will still receive cash back when redeeming their shares. BlackRock’s revised model may be sufficient to meet the SEC’s requirements. The revised plan will not require asset management companies to immediately liquidate Bitcoin positions on demand, will reduce the impact of large-scale collective redemptions on ETFs, and will not generate capital gains. Allows for more flexibility in managing investment portfolios without taxation. (The Block) According to previous news, according to sources, discussions between the SEC and asset management companies applying for Bitcoin spot ETFs have gone deep into key technical details, including regulatory arrangements, subscription and redemption mechanisms. The people said they requested anonymity because the discussions were private. A spokesman said BlackRock did not respond to a request for comment, Invesco declined to comment, and Grayscale said it continued to engage constructively with the SEC.