While the US Securities and Exchange Commission (SEC) has once again postponed spot Bitcoin ETF applications, a new development suggests that the applications are on their way to approval.
Eric Balchunas, senior ETF analyst at Bloomberg, said the SEC is meeting with exchanges this week regarding spot Bitcoin ETF applications. where did it go. The analyst said the institution wants stock exchanges to process the creation and redemption of ETF shares in cash, not in kind, and change its applications accordingly over the next few weeks. “It’s not a surprising development, but it’s still a good sign,” Balchunas said. He commented.
Balchunas said the SEC’s move would put the responsibility for Bitcoin transactions on companies that issue ETFs. The analyst emphasized that this would prevent brokerage firms from using unregistered subsidiaries or third-party companies to trade with Bitcoin. Balchunas also pointed out that only a few applicant companies had such a plan, while the rest chose to pay in kind.
Finally, the analyst said this development did not change his estimate that the chances of spot Bitcoin ETF approval by January were 90 percent.
James Seifert, another Bloomberg ETF analyst, said: “This is not a very important issue. “Nothing has changed, but it shows that things are progressing.” He commented.
It said the creation of ETF shares in cash would have a positive impact on demand for Bitcoin, while the in-kind exchange method would not have the same impact as cash.
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