The potential approval of a spot Bitcoin ETF has been a hot topic in cryptocurrency circles. A Bloomberg analyst reported that the US Securities and Exchange Commission has been interacting with exchanges regarding Bitcoin ETF applications. The commission has been advising applicants to handle funds in a certain way. This interaction shows that the SEC is comfortable with the process and could be a positive sign for ETF approval.
SEC Provides Guidance on ETFs
Bloomberg analyst Eric Balchunas explained that the SEC is advising ETFs to use ‘cash creates’ rather than ‘in-kind’ methods for creating and redeeming funds. ‘Cash creates’ allow authorized participants to exchange cash for shares, while ‘in-kind’ involves providing the ETF with a basket of assets. This guidance was unexpected but is seen as a good sign for ETF approval.
Recent delays for Global X and Franklin ETF filings have also been reported. The SEC is expecting public comments on these proposals, with the comment period lasting at least 35 and 21 days, respectively.
Rise of Bitcoin Price
The prospect of a Bitcoin ETF has brought optimism to crypto investors and enthusiasts, with Bitcoin’s current value at $36,337. This represents a 0.2% decline in price in the past day.
Hot Take: What’s Next for the Spot Bitcoin ETF?
The recent interactions between the SEC and exchanges, as well as the delays in ETF approvals, demonstrate the meticulous consideration being given to this landmark decision by the SEC. While this does raise concerns about shifting the market, it also indicates that the market is ripe and ready for the SEC to set a definitive standard for Bitcoin and other cryptocurrencies.
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