Bitcoin ETF

Bitcoin

Spot

A recent move from the United States Securities and Exchange Commission (SEC) suggests that a <a href="https://thecoinrise.com/bloomberg-analysts-see-90-probability-of-having-spot-bitcoin-etf-approval/">decision on the numerous spot Bitcoin ETF applications will be coming sooner than expected</a>. The spot Bitcoin ETF decision which would determine retail investors’ access to cryptocurrencies is expected to come from the SEC by January 10, only about two weeks away. 
<h2 id="b-sec-mandates-cash-create-redemption-model-for-spot-bitcoin-etf-b">SEC Mandates Cash Create Redemption Model for Spot Bitcoin ETF</h2> 
In the latest development, the agency allegedly had <a href="https://x.com/EleanorTerrett/status/1737934355786256416?s=20">several conference calls</a> with the ETF filers. Fox Business’ senior correspondent, Charles Gasparino described the <a href="https://coingape.com/just-in-sec-reportedly-held-calls-with-spot-bitcoin-etf-filers/" target="_blank" rel="noopener">meetings</a> as a “rare joint conference call.”&nbsp; 
The focus of the calls was to convince the potential ETF issuers to modify the redemption mechanism for the proposed ETF. Eleanor Terrett from FOX News also made a follow-up statement about the calls. According to her X app post, the calls were to ensure that ETF filers convert their in-kind redemption model so that “everyone is doing cash creates.”&nbsp; 
<h2 id="b-cash-create-or-in-kind-redemption-model-b">Cash Create or In-kind Redemption Model&nbsp;</h2> 
Since the SEC started <a href="https://thecoinrise.com/grayscale-meets-sec-over-its-spot-bitcoin-etf-application/">having meetings with applicants including Grayscale</a>, BlackRock, and Fidelity, their discussions have <a href="https://thecoinrise.com/sec-discussion-with-bitcoin-etf-applicants-advances-further/">centered around some technical issues related to the proposed Bitcoin ETF</a>. Precisely, the agency’s Trading and Markets division has related to these issuers on the potential redemption model for the ETF, custody arrangements, and investor risk disclosures. 
In its meeting with leading investment asset management firm BlackRock, the SEC advised that the cash create model for redemption should be adopted rather than in-kind model. However, like many other applicants, BlackRock seemed to prefer the latter. Fidelity Investments also prefers the in-kind redemption model.&nbsp; 
<h2 id="b-ark-21shares-adopts-sec-s-cash-create-model-b">ARK 21Shares Adopts SEC’s Cash Create Model</h2> 
Indicating a different stance, the duo of ARK Invest and 21Shares submitted a revised S-1 filing for its ETF to the SEC a few days ago and it has decided to adopt the cash create model. The cash create redemption model “means that the issuers have to convert their Bitcoin to cash before trading shares of the ETF,” Terrett explained. 
To put it in perspective, what the SEC is asking of issuers is that they do not use BTC directly to purchase or redeem the shares. Importantly, this is in line with the agency’s policy that prohibits broker dealers from engaging in Bitcoin trading. In addition, the SEC may be trying to mitigate the risks perceived to be associated with a Bitcoin ETF before it greenlights the applications on its desk. 
The post <a href="https://thecoinrise.com/sec-meeting-on-conference-calls-with-spot-bitcoin-etf-applicants/">SEC Meeting on Conference Calls With Spot Bitcoin ETF Applicants</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

SEC Meeting on Conference Calls With Spot Bitcoin ETF Applicants

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