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KEY POINTS
- The SEC is still pushing for the cash creation and redemption model on spot Bitcoin ETFs
- The regulator is reportedly concerned that the in-kind model would be used for money-laundering
- It was earlier reported that SEC had a “rare joint conference” with spot Bitcoin ETF hopefuls
With the deadline to decide on spot Bitcoin exchange-traded funds (ETF) just a few weeks away, the U.S. Securities and Exchange Commission (SEC) has reportedly called every applicant and offered them two choices: amend their filings by including cash creation and redemption model or else wait.
It was earlier reported that the major Wall Street regulator had a “rare joint conference” with spot Bitcoin ETF hopefuls as the deadline for deciding on the applications nears.
However, senior Bloomberg Intelligence ETF analyst Eric Balchunas said it was not a “giant conference” call but the SEC had called every applicant. The regulator reportedly reiterated its previous instruction and told them to amend their applications by including cash creations or wait for the next batch of approvals.
Balchunas sees the latest development regarding spot Bitcoin ETF applications as “interesting” and a “good sign.”
“We hearing it wasn’t one giant conf call b/t SEC and every issuer but rather many calls to exchanges/issuers to reiterate that its Cash Creates or You Will Wait, which we knew already via chatter and the updated S-1s this week. Still, interesting & good sign for Jan tho,” the EFF analyst said in a tweet Thursday.
We hearing it wasn’t one giant conf call b/t SEC and every issuer but rather many calls to exchanges/issuers to reiterate that its Cash Creates or You Will Wait, which we knew already via chatter and the updated S-1s this week. Still, interesting & good sign for Jan tho @JSeyff
— Eric Balchunas (@EricBalchunas) December 21, 2023
It was previously reported that the SEC was planning to approve several spot Bitcoin ETF applications at the same time or in batches and it won’t be based on the date of their submissions.
“I think the [SEC], if it’s going to approve a Bitcoin ETF, will approve more than one at once….most of these essentially will be the same, and it will come down to marketing [and] communicating the message,” Ark Invest CEO Cathie Wood told Bloomberg TV.
On Wednesday, a report claimed that the SEC was pushing for the cash creation and redemption model because it was concerned about money laundering via in-kind creates in spot BTC ETFs.
BREAKING Update on BTC Spot ETF: Firms believe @SECGov will rule after Jan 8; they feel confident the SEC will approve but with a twist; unlike normal ETF’s you can only purchase shares with cash; SEC worried about ETF’s being used as a vehicle for money laundering Story coming
— Charles Gasparino (@CGasparino) December 20, 2023
“Update on BTC Spot ETF: Firms believe @SECGov 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 ETF’s being used as a vehicle for money laundering,” Fox Business Network’s Charles Gasparino said.
