Bitcoin ETF

Bitcoin

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In a recent development, insider sources linked to&nbsp;<a href="https://www.foxbusiness.com/markets/sec-could-make-crypto-history-in-new-year-with-first-spot-bitcoin-etf-approval" rel="noopener noreferrer nofollow">FOX Business</a> suggest that the SEC is poised to greenlight the first spot Bitcoin exchange-traded fund (ETF) by Jan. 10, 2024. This potential decision looms as a transformative milestone for the widespread acceptance of cryptocurrency within the U.S.
Prominent financial institutions, including industry behemoths like BlackRock and Fidelity, have submitted roughly a dozen applications for spot&nbsp;<a href="https://u.today/bitcoin-etfs-we-may-be-in-for-unwelcome-surprise-max-keiser" rel="noopener noreferrer nofollow">Bitcoin ETFs</a>, valuing the digital asset in real time.
Although&nbsp;<a href="https://u.today/bitcoin-etf-hopes-grow-as-hashdex-meets-sec" rel="noopener noreferrer nofollow">the SEC</a> has refrained from making an official statement, recent indications from regulatory authorities hint at a favorable outcome, possibly entailing the simultaneous approval of multiple applications.
If granted, this approval would afford retail investors an economical means to engage with the largest cryptocurrency globally. Significantly, it would empower investors to transact on regulated platforms such as the NYSE and Nasdaq, steering clear of unregulated exchanges.
<h2 dir="ltr" id="nuance">Nuance</h2>
Nevertheless, a distinctive requirement from the SEC introduces a unique nuance to the approval process. The SEC is steadfast in its insistence that ETF applicants employ cash rather than&nbsp;<a href="https://u.today/bitcoin-price-to-hit-50000-by-february-jihan-wus-matrixport-predicts-if-this-happens" rel="noopener noreferrer nofollow">Bitcoin</a> to acquire shares, effectively eliminating the tax advantage associated with "in-kind" purchases.
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 <a href="https://twitter.com/hashtag/BitcoinETFs?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BitcoinETFs</a> cash or in-kind creation what's important?In-kind is simpler and cleaner for the fund, as the fund doesn't have to direct the trading of <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a>, but it means <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> can be sourced from anywhere.Cash is more complicated but it hands big power to the fund. The fund…— Arthur Hayes (@CryptoHayes) <a href="https://twitter.com/CryptoHayes/status/1737653472487669830?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 21, 2023</a>
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This directive has prompted some applicants, Grayscale among them, to advocate for a hybrid approach, involving both in-kind and cash creations to foster a more efficient market structure.
The SEC's preference for cash transactions is attributed to restrictions imposed on broker-dealers, preventing them from directly engaging in spot Bitcoin trading. Speculation abounds that the SEC's apprehensions regarding potential misuse of Bitcoin, including activities such as money laundering and market manipulation, are the driving forces behind this restrictive measure.

Bitcoin ETF Approval: SEC Signals Green Light by January 10, According to FOX

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