SEC conducting meetings with Spot Bitcoin ETF Applicants

The US Securities and Exchange Commission is reportedly engaged in multiple discussions with Spot Bitcoin ETF applicants prior to issuing permits on January 10, 2024, as reported by FOX Business.

As per the rumors doing the rounds, the SEC is prepared to wave the green flag for the initial spot bitcoin exchange-traded fund (ETF) by the designated date. Under the assumption of Charles Gasparino, a correspondent with FOX Business, various applicants are being consulted. The SEC is contemplating every issue involved.

With respect to the proposed ETFs, the redemption module has functioned as a spoke in the wheel for both applicants and regulators. Applicants such as BlackRock express a willingness to provide in-kind redemptions; however, the SEC is compelling them to convert their applications into cash creates redemptions. From the SEC’s perspective, all traces of in-kind redemption must be eliminated.

It appears that achieving clarity on the redemption module of the ETF is the final phase concerning collective consent. ETF analysts at Bloomberg have reported that the SEC plans to approve simultaneously for multiple spot bitcoin ETF products.

The continuous scrutiny surrounding the consent for ETFs has yielded a favorable impact on the valuation of Bitcoin. The ability of firms, including BlackRock, Franklin Templeton, Fidelity, and others, to offer ETFs that invest directly in Bitcoin is anticipated to attract a substantial amount of institutional capital, according to analysts.