Bitcoin

Spot Bitcoin ETF Approval May Happen After January 8

Key Points:

SEC decision on spot Bitcoin ETF expected post-January 8, companies optimistic but foresee a unique outcome.
The SEC mulls cash-only ETF share purchases to address money laundering concerns.
13 firms, including BlackRock, await SEC approval for spot Bitcoin ETFs; experts predict spot Bitcoin ETF approval in early 2024.

FOX Business Network senior reporter Charles Gasparino has provided a fresh update on the potential of spot Bitcoin ETF approval.

SEC’s Unique Approach Fuels Optimism for Spot Bitcoin ETF Approval

According to Gasparino’s exclusive sources, companies are expressing confidence that the United States Securities and Exchange Commission (SEC) will reach a decision on the spot Bitcoin ETF after January 8. The prevailing sentiment among these companies is optimistic, but they anticipate a unique aspect in the final decision.

Gasparino reports that the SEC is considering an unprecedented requirement for the purchase of ETF shares to be conducted exclusively with cash. This measure is reportedly aimed at addressing concerns about ETFs being exploited for money laundering activities. In contrast to traditional ETFs, a cash-only purchase system may be implemented to ensure greater security and prevent misuse.

The proposed in-kind redemption structure, favored by many firms for its appeal to investors, allows companies to redeem shares for the bitcoin held within their ETFs. However, the SEC views cash redemptions as a safer alternative, replacing the redeemed shares with their cash-equivalent value.

If approved, the spot Bitcoin ETF will mirror the market price of the underlying crypto asset, providing investors with exposure to the token without the need to purchase the currency directly.

Notably, 13 firms, including industry giants like BlackRock, WisdomTree, and Valkyrie, are eagerly awaiting SEC approval to issue a spot bitcoin ETF. Analysts predict the inaugural spot Bitcoin ETF approval could materialize in the early months of 2024.

Against the backdrop of anticipation, Bitcoin‘s value has surged, reaching $44,000 at the time of writing, reflecting a remarkable 4% increase in the past 24 hours.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.