2023-11-18 03:39:10
Bloomberg ETF analyst Eric Balchunas revealed today that the U.S. Securities and Exchange Commission (SEC) is interacting with exchanges regarding applications for Bitcoin spot ETFs and recommends that applicants use “cash subscription” instead of physical objects. He believes that this will be critical to the clearance of spot ETFs It’s a good sign.
(Previous summary: SEC postpones the resolution of Hashdex Bitcoin Spot ETF and Grayscale Ethereum futures. What is the next critical time?)
(Background supplement: BlackRock can’t wait for the review of Bitcoin and Ethereum ETFs! It directly stuns the SEC: spot and futures are essentially the same)
Contents of this article
SEC recommends using “cash subscription” for Bitcoin spot ETFsSEC delays decision on two more Bitcoin spot ETFsBTC jumped early in the morning
Good news came out today (18th) regarding the progress of the U.S. Bitcoin spot ETF application. Bloomberg ETF analyst Eric BalchunastweetsChina News Service reported that the U.S. Securities and Exchange Commission (SEC) has contacted exchanges regarding a large number of Bitcoin spot ETF applications.
“I heard that the SEC’s Division of Trading and Markets was communicating with exchanges this week regarding Form 19b-4s for the Bitcoin Spot ETF.
The SEC recommends that applicants “cash create” spot ETFs (rather than physical purchases) and requires them to propose revisions to this in the coming weeks.That’s not surprising, but it’s still a good sign. “
SEC recommends using “cash subscription” for Bitcoin spot ETFs
Balchunas believes that the SEC’s proposed “cash subscription” makes sense because broker dealers cannot trade Bitcoin, and the creation of cash would allow issuers to conduct Bitcoin transactions responsibly and eliminate the need for broker-dealers to use unregistered Subsidiaries or third-party companies to trade Bitcoin, which makes the overall restrictions less restrictive.
He said that currently, a small number of Bitcoin spot ETF applications have adopted “cash subscription”, while the remaining institutions have chosen physical subscription.
Only 2-3 applicants plan to use “cash subscription”, while the rest hope to do it in kind. Those that choose to use physical creation may have to make adjustments or risk delays in approval.
However, he believes that the latest proposal put forward by the SEC will not change their earlier predictions.That is, by January 10 next year, the probability of Bitcoin spot ETF being approved by the SEC is 90%。
This is a good sign and means the process is moving forward and the SEC has found a path in the pipeline that they are comfortable with.
Extended reading: Investment guru Kevin O’Leary: SEC approval of Bitcoin spot ETF “may wait another 18 months”, there are two major challenges for institutional investment in BTC
Hearing chatter SEC’s Trading & Markets engaged w/ exchanges this week on spot bitcoin ETF 19b-4s, is advising them they’d like the ETFs to do cash creates (vs in-kind), and has asked them to get in amendments in next couple wks. This isn’t unexpected but good sign nonetheless.
— Eric Balchunas (@EricBalchunas) November 17, 2023
SEC delays decision on two more Bitcoin spot ETFs
However, this Thursday, the SEC postponed the decision on Hashdex’s “Bitcoin Spot ETF” and Grayscale’s “Ethereum Futures ETF” respectively.
Today, as analysts expected, the SEC officially delayedFranklin Templetonand GlobalX The decision time for the Bitcoin spot ETF application is until early January 2024, and the SEC may still decide to postpone the decision once more by then.
BTC jumped early in the morning
After the SEC made a recommendation on the Bitcoin spot ETF application, investors expected the possibility of approval to further increase. The price of Bitcoin quickly climbed 2.7% to US$36,800 in the early morning of this morning, and was reported at US$36,418 at the time of writing. The decline in the past 24 hours narrowed to 0.2%.
Source: Trading View
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Tags: SECBitcoinBitcoin Spot ETFUS
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