Spot Bitcoin ETF Applicants Meet With The SEC To Guarantee Cash Conditions
Key Points:
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The SEC meets with spot Bitcoin ETF applicants, urging modifications to redemption models.
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Dispute over redemption models unfolds as BlackRock advocates “in-kind” and SEC pushes for “cash creates.”
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With an SEC decision expected by January 10, the outcome could reshape the cryptocurrency landscape.
The U.S. Securities and Exchange Commission (SEC) has reportedly engaged in targeted conference calls with all spot Bitcoin ETF applicants.
Read more: Spot Bitcoin ETF Approval May Happen After January 8
SEC Takes Unprecedented Steps For Spot Bitcoin ETF Applicants
According to Fox Business Network’s Senior Correspondent, Charles Gasparino, this regulatory action is considered “rare.” The primary focus of these discussions revolves around persuading spot Bitcoin ETF applicants, including industry giants like BlackRock, to modify their proposed Bitcoin ETF redemption models.
SCOOP: @SECGov is having what's described as a rare joint conference call with prospective "spot" #BTC ETF filers, as its closely watched decision looms on whether to give these cos the green light to sell to small investors access to crypto. @FoxBusiness reported yesterday the…
— Charles Gasparino (@CGasparino) December 21, 2023
The redemption model has been a contentious issue between spot Bitcoin ETF applicants and regulators, with BlackRock advocating for “in-kind” redemptions while the SEC is pushing for “cash creates” redemptions.
Fox Business reporter Eleanor Terrett revealed that sources have disclosed the SEC’s efforts to hold joint conference calls, emphasizing the need for physically-backed Bitcoin ETFs to be cash-settled. Additionally, the SEC requires applicants to eliminate any references to physical redemption in their filings.
The SEC is expected to make decisions on multiple ETF filings by January 10, with a particular focus on the Prime Execution Agent model becoming a central point of discussion. Notably, industry leaders like BlackRock may need to revise their filings to align with the SEC’s evolving guidelines. This regulatory move reflects the SEC’s shift towards a more interactive and cautious approach to cryptocurrencies.
Investors are closely watching these developments, as a positive outcome could pave the way for Wall Street giants such as BlackRock, Fidelity, and Franklin Templeton to offer ETFs directly invested in Bitcoin. Analysts anticipate that such approval could usher in billions of institutional capital into the cryptocurrency space, leading to a potentially favorable impact on Bitcoin prices.
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