SEC Makes ‘Rare’ Calls to Spot Bitcoin ETF Applicants — Analyst Says ‘Good Sign’ for January 10 Approval
Publikováno: 23.12.2023
The U.S. Securities and Exchange Commission (SEC) has reportedly made “rare” calls to spot bitcoin exchange-traded fund (ETF) issuers and exchanges regarding their applications. A Bloomberg ETF analyst views this development as a “good sign” for the expected approvals by Jan. 10. The securities regulator has insisted on the cash creation model, rather than the […]
The U.S. Securities and Exchange Commission (SEC) has reportedly made “rare” calls to spot bitcoin exchange-traded fund (ETF) issuers and exchanges regarding their applications. A Bloomberg ETF analyst views this development as a “good sign” for the expected approvals by Jan. 10. The securities regulator has insisted on the cash creation model, rather than the in-kind model, for spot bitcoin ETFs.
SEC’s ‘Rare’ Calls Regarding Spot Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) actively held meetings with spot bitcoin exchange-traded fund (ETF) applicants this week. Blackrock, the world’s largest asset manager, and several other spot bitcoin ETF applicants met with the securities watchdog on Thursday, according to filings with the SEC.
Moreover, Fox Business Network’s senior correspondent, Charles Gasparino, shared on social media platform X Thursday that the SEC is “having what’s described as a rare joint conference call with prospective spot BTC ETF filers, as its closely watched decision looms on whether to give these companies the green light to sell to small investors access to crypto.” Fox Business reported a day prior that “the decision is coming by Jan 10.”
Referencing this “rare joint conference,” Bloomberg ETF analyst Eric Balchunas stated on X:
We [are] 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.
The analyst views this development as interesting and a “good sign” for the expected spot bitcoin ETF approvals by Jan. 10. He has maintained that there is a 90% chance of approval by that date.
While many spot bitcoin ETF issuers prefer to use the in-kind creation model, the SEC prefers the cash creation model. Blackrock, the world’s largest asset manager, recently amended its spot bitcoin ETF filing to adopt the cash creation model.
Balchunas detailed on Wednesday, referencing Gasparino: “SEC worried about money laundering via in-kind creations in a spot bitcoin ETF, this is why they so dug in on cash creates only (which is a much more closed system).” The Fox Business correspondent shared on X: “Firms believe the SEC 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 ETFs being used as a vehicle for money laundering.”
Another Bloomberg analyst, James Seyffart, wrote on X:
We still think this is happening by Jan 10. Some issuers may be left behind … base case I’m expecting approvals Jan 8-10.
What do you think about the SEC making rare calls to spot bitcoin ETF applicants? Do you think the regulator will approve these filings by Jan. 10? Let us know in the comments section below.