According to Financial firms are confident that the Securities and Exchange Commission (SEC) will rule in favor of approving spot Bitcoin exchange-traded funds (ETFs) after January 8, 2024, according to Charles Gasparino of Fox Business.
Gasparino’s post also stated that shares of Bitcoin ETFs would only be available for purchase with cash, rather than Bitcoin. The regulator “is concerned that ETFs are being used as a vehicle for money laundering.” Over the past few weeks, spot Bitcoin ETF issuers like BlackRock have been meeting with the SEC to discuss the latest details of their ETFs. There was one subject in particular on which the regulator met with issuers, namely creations in kind or in cash of ETF shares.
Eric Balchunas, senior ETF analyst at Bloomberg commented on the news, saying: “The SEC is concerned about money laundering via in-kind creations in a spot Bitcoin ETF, which is why they have focused so much on cash-only creations (which is a much more farm).”
Earlier this week, BlackRock and other ETF issuers complied with SEC requirements and deposited their ETFs in cash for creations. To be clear, ETFs will hold bitcoins in cash, but the process of purchasing shares of the ETF will be done in cash, meaning investors will give their money to their preferred ETF issuer who will then purchase the bitcoin cash to hold in the ETF. .
“BlackRock has gone cash only. It’s basically over. The debate is over. In-kind contributions will have to wait,” Balchunas said. said Monday.
If the SEC approves these proposed Bitcoin ETFs, it would mark an important step in the legitimization and integration of Bitcoin into traditional investment portfolios. The move would also signal a shift in regulatory attitude towards greater acceptance and regulation of Bitcoin.
Although no official statement has been released by the SEC regarding the purported discussions, Gasparino’s message has sparked interest and optimism within the financial industry, with stakeholders eagerly awaiting possible approval around January 8.