Bitcoin ETF

Bitcoin

<p>Big US banks are pushing the Securities and Exchange Commission (SEC) to change existing rules to make it possible for them to hold digital assets on behalf of Bitcoin ETF customers.</p>
<p>In a <a href="https://www.aba.com/-/media/documents/letters-to-congress-and-regulators/jointclsec20240214.pdf" target="_blank" rel="noopener noreferrer nofollow">letter</a> dated February 14, several leading financial firms in the US urged the SEC Chair, Gary Gensler, to change the definition of crypto assets. Doing so will allow these firms to venture deeper into the crypto industry as custodians for digital assets.</p>
<h2 id="us-banks-complain-of-missing-out-on-spot-bitcoin-etfs">US Banks Complain Of Missing Out On Spot Bitcoin ETFs</h2>
<p>The letter said that US banks are missing out on custody business from the recently approved spot Bitcoin exchange-traded funds (ETFs).</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">US banks, left off key bitcoin ETF roles, are pushing SEC to tweak guidance around holding digital assets. A bank trade gp coalition sent SEC letter asking them exclude ETFs from broad crypto umbrella. They want a piece of the action. I don't blame them, it isn't fair.… <a href="https://t.co/advPa94nK2" rel="noopener noreferrer nofollow">pic.twitter.com/advPa94nK2</a></p>
 <p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1758189333079531752?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 15, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>Banks cannot serve as asset custodians to Bitcoin ETFs because of the Staff Accounting Bulletin 121 (SAB 121) guideline issued in March 2022.</p>
<p>The SAB 121 guideline mandates banks to hold cryptocurrencies on their balance sheet. Doing this is an expensive affair and prevents banks from exploring crypto asset custody.</p>
<p>The banks now want the SEC to consider modifications to the guidelines. They request that banks be exempted from holding crypto on their balance sheets. Instead, the SEC should require them to offer disclosures when engaging in crypto activities to maintain transparency, the letter said.</p>
<p>The banks also said SAB 121 guidelines were outdated as they were formulated before the approval of spot Bitcoin ETFs.</p>
<h2 id="bitcoin-etf-inflows-surge">Bitcoin ETF Inflows Surge</h2>
<p>Spot Bitcoin ETFs have hit positive net flows of $4.5 billion since launch, while the ETFS offered by BlackRock and Fidelity attracted more assets during their first month of trading than any other ETF launched in the US in the last three decades.</p>
<h2 id="also-read">Also Read</h2>
<ul>
 <li><a href="https://insidebitcoins.com/news/bitcoin-etf-market-blossoms-while-gold-etfs-hemorrhage-assets-at-alarming-rate" rel="noopener noreferrer nofollow">Bitcoin ETF Market Blossoms While Gold ETFs Hemorrhage Assets At “Alarming Rate”</a></li>
 <li><a href="https://insidebitcoins.com/news/bitcoin-price-prediction-btc-pumps-13-in-7-days-to-boost-microstrategy-bitcoin-profits-above-4-billion-as-this-bitcoin-derivative-closes-on-11-million" rel="noopener noreferrer nofollow">Bitcoin Price Prediction: BTC Pumps 13% In 7 Days To Boost MicroStrategy Bitcoin Profits Above $4 Billion As This Bitcoin Derivative Closes On $11 Million</a></li>
 <li><a href="https://insidebitcoins.com/news/citibank-says-blockchain-may-make-asset-management-more-efficient-after-tokenization-experiment-on-avalanche" rel="noopener noreferrer nofollow">Citibank Says Blockchain May Make Asset Management More Efficient After Tokenization Experiment On Avalanche</a></li>
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Big US Banks Pressure SEC To Change Rules So They Can Be Custodians For Bitcoin ETF Assets

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