SEC's Decision on Bitcoin ETFs: What You Need to Know Before the Deadline

EddieJayonCrypto

 28 Dec 23

tl;dr

As the SEC's deadline for Bitcoin ETF applications approaches, expectations of approval grow. However, potential challenges lie in Grayscale's substantial advantage in embedded assets and volume, potentially posing a challenge for the SEC in maintaining a level playing field. Clear language on cash-...

As the SEC's deadline for Bitcoin ETF applications approaches, expectations of approval grow. However, potential challenges lie in Grayscale's substantial advantage in embedded assets and volume, potentially posing a challenge for the SEC in maintaining a level playing field. Clear language on cash-only creations is required, and the SEC needs to weigh the impact carefully. Ultimately, the SEC's decision will significantly shape the competitive landscape of the Bitcoin ETF market and its participants.

As the eagerly anticipated deadline for Bitcoin ETF applications approaches, there are growing expectations that the US Securities and Exchange Commission (SEC) is prepared to approve spot Bitcoin ETFs. However, Bloomberg’s ETF expert, Erich Balchunas, reveals that the SEC will likely require clear language regarding cash-only creations and a signed agreement with an authorized participant (AP). The potential conversion of Grayscale's Grayscale Bitcoin Trust into an ETF could impact the competitive landscape.

Disclaimer:
This is not financial advice. Please do your own research before investing in any asset.