Bloomberg analyst Eric Balchunas has reported that the Securities and Exchange Commission (SEC) is instructing spot Bitcoin ETF applicants to incorporate cash creates. This means that instead of delivering Bitcoin assets in exchange for shares of the ETF, participants would deliver cash. Balchunas explains that cash creation may be preferred because broker-dealers cannot deal in Bitcoin. This approach would allow issuers to transact in Bitcoin directly, avoiding reliance on unregistered subsidiaries and third-party firms. Balchunas estimates that only a few of the current spot Bitcoin ETF applicants planned to do cash creates prior to this rumor, potentially requiring other firms to adjust their filings. Despite this development, Balchunas maintains his prediction of a 90% chance of a spot Bitcoin ETF approval by January. The SEC has not provided public details about its engagement with ETF applicants, but it began seeking input on various applications in late September. The SEC is expected to approve or reject a spot Bitcoin ETF by early next year, with a decision deadline of January 10, 2024, for an application from ARK Invest.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	neutral
Relevance Score	1
People	Eric Balchunas
Companies	Bloomberg, Trading & Markets division, ARK Invest, SEC, X
Currencies	Bitcoin
Securities	None