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
The Daily: Hyperliquid set for HYPE token launch, MARA purchases $615 million in bitcoin and more
Tax on Bitcoin (BTC) and Cryptocurrencies from Russia!
The Russian Federation Council has approved a new tax bill for cryptocurrency mining and trading.
Tornado Cash Decision from the US Will Benefit These Altcoins the Most!
10X Research founder Markus Thielen assessed the impact of the Tornado Cash decision.
Another Country Makes a Move for Bitcoin! The First Step Has Been Taken for a Strategic BTC Reserve!
Vancouver Mayor Ken Sim has announced plans to add Bitcoin to the city's balance sheet in an effort to diversify the city's investment portfolio.
Trending news
MoreCrypto prices
More
