SEC in Talks with Exchanges Regarding Spot ETFs, According to Reports

SEC in Talks with Exchanges Regarding Spot ETFs, According to Reports


Spot Bitcoin ETF Applications Facing Regulatory Discussions

In recent discussions, Eric Balchunas, Bloomberg’s senior ETF analyst, disclosed ongoing talks between the U.S. Securities and Exchange Commission (SEC) and exchanges concerning spot Bitcoin ETF applications.

Balchunas mentioned that the SEC’s Trading & Markets division has been actively engaged in discussions with exchanges, specifically addressing 19b-4s related to spot Bitcoin ETFs.

The SEC has reportedly advised exchanges to consider cash creates instead of in-kind transactions and has encouraged them to submit amendments in the coming weeks. Although not entirely surprising, this involvement is seen as a positive sign for the industry.

Bitcoin Price Spike and SEC’s Preference for Cash Creates

Following these developments, the price of Bitcoin saw an $800 increase. Balchunas pointed out that the SEC’s preference for cash creates aligns with the restrictions that broker-dealers face in directly dealing with Bitcoin.

Choosing cash creates places the responsibility on ETF issuers to transact in Bitcoin, eliminating the need for broker-dealers to engage unregistered subsidiaries or third-party firms when dealing with Bitcoin.

He wrote on X, “Only 2-3 filers had planned cash creates, the rest wanted to do in-kind. So may have to adjust or risk delay. Anyway, this doesn’t change our 90% odds up or down but is a good sign the process is advancing and the SEC has a path forward in the plumbing that they are comfortable with.”

Balchunas explained that initially, only 2-3 filers had intended to use cash creates, while the majority favored in-kind transactions. This could mean adjustments are necessary for those aiming to comply with the SEC’s guidance or risk potential delays in their applications. He clarified that while these developments don’t significantly affect the 90% probability for or against spot Bitcoin ETF approval, they signal positive progress in the SEC’s approach.

READ NOW
Four Memes Coins Soar 100%+ in 24 Hours! 🚀😱

Journey Towards Regulatory Progress

James Seyffart, an ETF analyst, added to the conversation, noting that the latest update on the spot Bitcoin ETF situation doesn’t bring fundamental changes but indicates ongoing progress, signaling forward movement in the regulatory process.

In recent developments, Eric Balchunas, Bloomberg’s senior ETF analyst, took to social media and opened up about the ongoing discussions between the U.S. Securities and Exchange Commission (SEC) and exchanges regarding spot Bitcoin ETF applications.

Balchunas noted that the SEC’s Trading & Markets division has been actively involved in talks with exchanges this week, specifically addressing 19b-4s related to spot Bitcoin ETFs.

The SEC is reportedly advising exchanges to opt for cash creates, as opposed to in-kind transactions, and has encouraged them to submit amendments in the coming weeks. While not entirely unexpected, this engagement is viewed as a positive sign for the industry.

Following these latest developments, the price of Bitcoin experienced an $800 spike. Balchunas explained that the SEC’s preference for cash creates, makes sense because broker-dealers are restricted from dealing directly in Bitcoin.

READ NOW
Top crypto picks 🚀: Explosive gains expected 🤑

Opting for cash creates, places the responsibility on ETF issuers to transact in Bitcoin, eliminating the need for broker-dealers to involve unregistered subsidiaries or third-party firms when dealing with Bitcoin. 

He wrote on X, “Only 2-3 filers had planned cash creates, the rest wanted to do in-kind. So may have to adjust or risk delay. Anyway, this doesn’t change our 90% odds up or down but is good sign the process marching and SEC has a path fwd in the plumbing that they are comfortable with.”

Balchunas pointed out that, initially, only 2-3 filers had planned to use cash creates, while the majority preferred in-kind transactions.

This may necessitate adjustments for those seeking to adhere to the SEC’s guidance or face potential delays in their applications. He clarified that while these developments don’t significantly alter the 90% probability for or against spot Bitcoin ETF approval, they indicate positive progress in the SEC’s approach and comfort level with the evolving landscape.

Adding to the conversation, ETF analyst James Seyffart noted that the latest update on the spot Bitcoin ETF situation doesn’t bring groundbreaking changes but hints that progress is indeed ongoing, signaling forward movement in the regulatory process.

Hot Take

Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

The ongoing discussions and engagement between the SEC and exchanges regarding spot Bitcoin ETF applications indicate positive progress in the regulatory path, offering hope for the industry and signaling forward movement in the development of cryptocurrency trading.

READ NOW
Binance Launches ‘Megadrop’ Token Platform, Chooses Bitcoin Chain 🚀
SEC in Talks with Exchanges Regarding Spot ETFs, According to Reports
Author – Contributor at Lolacoin.org | Website

Cino Gaperi stands out as a prominent crypto analyst, accomplished researcher, and adept editor, making significant contributions to the field of cryptocurrency. With a strong background in crypto analysis and research, Cino’s insights delve deep into the intricate aspects of digital assets, appealing to a diverse audience. His keen analytical skills are complemented by his editorial proficiency, allowing him to distill complex crypto information into easily digestible content. Cino’s contributions serve as a valuable compass for both seasoned enthusiasts and newcomers, guiding them through the dynamic landscape of cryptocurrencies with well-researched perspectives. With a commitment to precision, he empowers informed decision-making within the ever-evolving crypto sphere.

Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!

Latest Crypto News