SEC rumored to be instructing spot Bitcoin ETF applicants to incorporate cash creates
Bloomberg analyst Eric Balchunas said on Nov. 17 that securities regulators are instructing spot Bitcoin ETF applicants to handle funds in a specific way....
- Securities regulators are instructing spot Bitcoin ETF applicants to handle funds in a specific way.
- The SEC's Trading & Markets division has engaged with exchanges regarding spot Bitcoin ETF 19b-4s.
- The SEC is advising ETFs to use cash creates instead of in-kind creations.
- Cash creates would allow issuers to transact in Bitcoin directly, avoiding reliance on unregistered subsidiaries and third-party firms.
- Balchunas estimates that only a few current spot Bitcoin ETF applicants planned to use cash creates prior to the rumor, potentially requiring adjustments to their filings.
- Balchunas maintains his prediction of a 90% chance of a spot Bitcoin ETF approval by January.
- The rumor is unverified, but the SEC's previous actions lend credibility to the idea of cash creates being considered.
- The SEC is expected to make a decision on a spot Bitcoin ETF by early next year, with a deadline of Jan. 10, 2024 for an application from ARK Invest.
The sentiment of the article is generally positive, with the development of regulators instructing spot Bitcoin ETF applicants seen as a good sign and an indication that the SEC has a path forward. Balchunas maintains a positive outlook on the approval of a spot Bitcoin ETF.