For#Bitcoinspot ETFs, whether it is physical exchange or cash exchange, holders of secondary market ETFs cannot directly redeem them into spot #BTC. Only authorized participants (market makers) recognized by the SEC can redeem spot goods, and retail investors cannot request redemption of spot goods from the trust. The latest S1 form shows that BlackRock has completely changed to a cash exchange model. Authorized Participants will only deliver cash to create and redeem shares (ETFs) and may not directly or indirectly purchase, hold, deliver or receive #Bitcoin. The trust will create shares by receiving Bitcoin from a third party, and when shares are redeemed, the trust will do so by delivering BTC to the third party. Some people interpret that the passage of the#Bitcoinspot ETF is actually negative because the trust does not hold any spot BTC. This is wrong. In fact, spot BTC exists in third-party custodians, and ETF providers must purchase spot BTC. The biggest advantage of spot ETFs is that it opens up the possibility for various institutions and investors to purchase #BTC, and in terms of taxation, BlackRock also explained that the trust should be properly treated as a grantor trust and is not subject to U.S. federal income tax.