The U.S. SEC requires issuers to use cash to create spot Bitcoin ETFs, and application documents must delete all hints of physical redemption.
Fox senior reporter Charles Gasparino posted that the US Securities and Exchange Commission (SEC) is holding a joint conference call with potential Bitcoin ETF applicants. Sources say that the SEC is requiring that cash be used to purchase ETFs instead of Bitcoin, and is requesting that issuers remove all references to physical redemption from their documents.
This means that issuers must convert their Bitcoin to cash before trading ETF shares. In other words, they cannot use Bitcoin to buy or redeem stocks.
The cash create route means that ETF issuers must convert Bitcoin to cash for each transaction, which is a longer and more complex process that requires issuers to purchase Bitcoin themselves instead of through broker-dealers.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Will Ethereum Bulls Guide ETH to a Surprising 23% Price Surge?
Analyzing Potential Market Trends for a Significant Ethereum Price Jump

Exploring the Diminishing Crypto Speculation Amidst Slump in Futures Open Interest
Exploring the Decline in Open Interest and Reduced Market Enthusiasm for Major Cryptocurrencies and Memecoins

Could the GameStop CEO be indicating a $4.6B Bitcoin venture? Find Out
Unraveling Speculations: GameStop CEO Ryan Cohen's Recent Actions Stoke Wealthy Bitcoin Investment Rumors

Societe Generale-Forge Launches MiCA-Compliant Euro Stablecoin on Stellar
Trending news
MoreCrypto prices
More








