When the SEC requires cash redemptions, it hopes to minimize the number of intermediaries in spot Bitcoin ETFs to make them more controllable.
Eric Balchunas, a senior ETF analyst at Bloomberg, said in an interview that many ETF applicants have updated their registration documents with cash creation and redemption models. As of December 22, seven applicants' applications were fixed as cash creation, while the registration statements of the other seven applicants included both cash creation and physical modes. Most existing ETFs involve physical creation, which means that when intermediaries want to issue new ETF shares, they will provide funds to companies such as BlackRock using actual assets such as Bitcoin. This is how 90% of ETFs work with physical assets, while only 10% use cash.
ETF analysts believe that the US SEC wants cash-based Bitcoin ETFs because they want to minimize the number of intermediaries who can actually obtain Bitcoin in the redemption and issuance process. The US Securities and Exchange Commission hopes to "further close the loop" and reduce money laundering issues.
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
US Dollar Index Down 9% in 2025 Boosts Bitcoin Outlook
The US Dollar Index is down over 9% in 2025, marking its worst yearly start ever. Bitcoin bulls see this as a major buying signal.DXY Plunge Sparks Market ReactionsWhy This Is Bullish for BitcoinA Shift in Global Market Sentiment

Staked ETH Hits All-Time High with 35M Locked
Over 35 million ETH is now staked, accounting for 28.3% of the total supply—a new all-time high for Ethereum.Ethereum Staking Reaches Record LevelsWhat This Means for EthereumA Bullish Sign for Long-Term Holders
Trump Claims Strike on Iran’s Nuclear Sites a Success
Trump announces successful attack on three Iranian nuclear sites, escalating tensions and raising global security concerns.Trump Confirms Targeted Attack on IranIran Responds to the EscalationGlobal Reaction and Market Impact
Major Crypto Liquidation Spree: 172K Traders Suffer $682M Loss
172K crypto traders liquidated in 24h, over $682M lost—$596M from longs. What drove the carnage and what comes next?Longs vs. Shorts: Who Took the Bigger Blow?What Sparked the Sell-Off?📊 What Now? Key Takeaways for Traders
Trending news
MoreCrypto prices
More








