SEC Holds Joint Conference Call on Spot Bitcoin ETF
The US Securities and Exchange Commission (SEC) reportedly held a joint conference call with spot Bitcoin ETF filers. This is a developing story as the decision on the spot ETF could come by January 10 and will determine retail investors’ access to crypto.
SEC Ensures Broker’s Trading Restriction
A follow-up report states that the SEC’s focus during the joint conference call was on ensuring that issuers convert all “in-kind redemptions” from their ETF filings. This means that issuers have to convert their Bitcoin to cash before trading shares of the ETF. The SEC has directed issuers not to use Bitcoin directly to purchase or redeem shares, aligning with its current policy of not permitting broker-dealers to engage in Bitcoin trading.
Report: Several Calls Made to Exchanges
With the deadline for the SEC’s decision approaching, it was initially believed that a joint conference call had taken place between the SEC and issuers. However, it has been reported that multiple separate calls were made to exchanges and issuers regarding cash creates. The SEC may also be asking issuers to adhere to a stricter model. The approval window remains the same, with a comment period for late filers.
Hot Take: SEC Mitigates Risks with Cash Conversions
The SEC’s cautious approach in the past has now turned into dialogue, as evidenced by this joint conference call. By mandating cash conversions, the SEC could be aiming to mitigate risks before potential approval. This development is significant for the cryptocurrency market, as it shows a shift towards more open communication and potential acceptance of crypto-related investment products.
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