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50 sats \ 2 replies \ @siggy47 OP 20 May \ parent \ on: BlackRock's Paper Bitcoin bitcoin
Thanks. So the credits don't need to be settled in cash for 30 days?
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54 sats \ 1 reply \ @grayruby 20 May
Not sure. I guess it is whatever is agreed between coinbase and blackrock but he seemed to imply they get settled as soon as trades between blackrock and authorized participants settle.
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0 sats \ 0 replies \ @grayruby 20 May
Here is what he said about that part.
It's: (a) get creation order (b) borrow cash in form of trade credits (c) buy bitcoin (d) exchange cash for btc (e) btc settles into trading balance (offchain).
In a regular end-of-day sweep process, the bitcoin that was acquired in the step above gets transferred from the trading account to the "Vault Balance."
^^ this transaction is on-chain ^^ remember: transactions from the Prime entity to the Custody entity are onchain.
Once the AP that started the process delivers cash to the ETF (which I believe happens on T+1 but we'd need to ask Blackrock to be sure, could be T2) IBIT takes the cash & repays the loan to Coinbase (cash in the form of trade credits) and that leg of the txn is complete.
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