BlackRock has reportedly met with officials from the SEC regarding its spot Bitcoin ETF application, with discussions focusing on the choice between cash or in-kind redemption models. Bloomberg ETF analyst James Seyffart believes that BlackRock prefers the in-kind model, which involves a 5-step process starting with a Market Maker placing an order for redemption through an Authorized Participant. Other applicants, however, reportedly prefer the cash create option to mitigate restrictions placed on broker-dealers. Grayscale has also been in talks with the SEC and has executed a Transfer Agency and Service Agreement with BNY Mellon for its spot Bitcoin ETF.