Spot Bitcoin (BTC) ETF Applications Facing Regulatory Discussions
In recent discussions, Eric Balchunas, Bloomberg’s senior ETF analyst, disclosed ongoing talks between the United States Securities and Exchange Commission (SEC) and exchanges concerning spot Bitcoin (BTC) ETF applications.
Balchunas mentioned that the SEC’s Trading & Markets division has been actively engaged in discussions with exchanges, in particular addressing 19b-4s related to spot Bitcoin (BTC) ETFs.
The SEC has reportedly advised exchanges to consider cash establish instead of in-kind transactions and has encouraged them to submit amendments in the coming weeks. Despite the fact that not entirely surprising, this involvement is seen as a positive sign for the industry.
Bitcoin (BTC) Price Spike and SEC’s Preference for Cash Creates
Following these developments, the price of Bitcoin (BTC) saw an $800 increase. Balchunas noted that the SEC’s preference for cash establish aligns with the restrictions that broker-dealers face in directly dealing with Bitcoin.
Choosing cash establish places the responsibility on ETF issuers to transact in Bitcoin, eliminating the need for broker-dealers to participate unregistered subsidiaries or third-party corporations when dealing with Bitcoin.
He wrote on X, “Only 2-3 filers had planned cash establish, 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 positive indication the procedure is advancing and the SEC has a path forward in the plumbing that they are comfortable with.”
Balchunas stated that at the beginning, only 2-3 filers had intended to use cash establish, 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 probable delays in their applications. He made it clear that even though these developments do not significantly affect the 90% probability for or against spot Bitcoin (BTC) ETF approval, they signal positive progress in the SEC’s approach.
Journey Towards Regulatory Progress
James Seyffart, an ETF analyst, added to the conversation, keeping in mind that the latest update on the spot Bitcoin (BTC) 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 United States Securities and Exchange Commission (SEC) and exchanges regarding spot Bitcoin (BTC) ETF applications.
Balchunas pointed out that the SEC’s Trading & Markets division has been actively involved in talks with exchanges this coming week, in particular addressing 19b-4s related to spot Bitcoin (BTC) ETFs.
The SEC is reportedly advising exchanges to opt for cash establish, as opposed to in-kind transactions, and has encouraged them to submit amendments in the coming weeks. Although while not entirely unexpected, this engagement is viewed as a positive sign for the industry.
Following these latest developments, the price of Bitcoin (BTC) experienced an $800 spike. Balchunas stated that the SEC’s preference for cash establish, makes sense because broker-dealers are restricted from dealing directly in Bitcoin.
Opting for cash establish, places the responsibility on ETF issuers to transact in Bitcoin, eliminating the need for broker-dealers to involve unregistered subsidiaries or third-party corporations when dealing with Bitcoin.
He wrote on X, “Only 2-3 filers had planned cash establish, 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 positive indication the procedure marching and SEC has a path fwd in the plumbing that they are comfortable with.”
Balchunas noted that, at the beginning, only 2-3 filers had planned to use cash establish, while the majority preferred in-kind transactions.
This may necessitate adjustments for those seeking to adhere to the SEC’s guidance or face probable delays in their applications. He made it clear that even though these developments do not significantly alter the 90% probability for or against spot Bitcoin (BTC) 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 pointed out that the latest update on the spot Bitcoin (BTC) ETF situation doesn’t bring groundbreaking changes but hints that progress is already ongoing, signaling forward movement in the regulatory process.
Hot Take
The ongoing discussions and engagement between the SEC and exchanges regarding spot Bitcoin (BTC) ETF applications indicate positive progress in the regulatory path, offering hope for the industry and signaling forward movement in the development of digital currency trading.
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