According According to Charles Gasparino of Fox Business, financial companies 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.
Gasparino's post also indicated that bitcoin ETF shares will only be available to purchase with cash, rather than also with bitcoin. The regulator is “concerned about the use of ETFs as a vehicle for money laundering.” Over the course of the last few weeks, spot bitcoin ETF issuers like BlackRock have been meeting with the SEC to discuss the final details of its ETFs. There was one issue in particular that the regulator was meeting with issuers about, and that was the creation of in-kind versus cash ETF shares.
Eric Balchunas, Senior ETF Analyst at Bloomberg commented in the news, saying: “The SEC was concerned about money laundering through in-kind creations in a spot bitcoin ETF, which is why they focused so much on cash-only creations (which is a much more complex system). closed)”.
Earlier this week, BlackRock and other ETF issuers complied with the SEC and filed their ETFs as cash for their creations. To be clear, ETFs will hold bitcoins in cash, but the process of purchasing ETF shares will be in cash, meaning investors will hand over their cash to their preferred ETF issuer, who will then purchase the bitcoins in cash to hold them. the ETF. .
“BlackRock has opted for cash only. This is basically a summary. The debate is over. Payments in kind will have to wait,” Balchunas saying on Monday.
If the SEC were to approve these proposed bitcoin ETFs, it would mark a major milestone in the legitimization and integration of bitcoin into traditional investment portfolios. The move would also signal a shift in regulatory sentiment toward greater acceptance and regulation of bitcoin.
While the SEC has not released official statements regarding the alleged discussions, Gasparino's publication has sparked interest and optimism within the financial industry, with interested parties eagerly anticipating a possible approval around January 8.
