SEC or the U.S. Securities and Exchange Commission, has taken some rare calls to spot the issuers of the Bitcoin ETF or exchange-traded funds and the exchanges that are made regarding their applications.
An analyst from Bloomberg ETF is viewing these developments as a good sign for the approvals they are expecting by January 10. The securities regulator insisted on a cash creation model, rather than any in-kind model, for ETFs.
SEC Took A Few Rare Calls About Bitcoin ETFs
The SEC held active meetings with ETF applicants this week. The largest asset manager in the world, Blackrock, along with many other applicants for spot Bitcoin ETF met on Thursday with the securities watchdog.
Moreover, Charles Gasparino, the senior correspondent from Fix Business Network, shared on X Thursday that SEC 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 companies the green light to sell to small investors access to crypto.” Fox Business mentioned it a day before that the decision would be disclosed by January 10.
The analysts are looking at these developments as something good for the ETF approvals that are expected by January 10. There are many bitcoin ETF issues who want to use the in-kind model for creation, the SEC wants to bring into the cash creation model.
Balchunas gave some details and referred to Gasparino on Wednesday and said, “SEC worried about money laundering via in-kind creations in a spot bitcoin ETF, this is why they so dug in on cash creates only (which is a much more closed system).”The business correspondent from Fox Business shared a post on X, mentioning, “Firms believe the SEC will rule after Jan 8; they feel confident the SEC will approve but with a twist; unlike normal ETFs, you can only purchase shares with cash; SEC worried about ETFs being used as a vehicle for money laundering.”