Bitwise and Hashdex, issuers of the Bitcoin spot ETF, have released consecutive advertisements to warm up the market as the ETF has not yet been approved. Fox Business, citing several traditional financial professionals, further states that many large fund management companies increasingly believe that the SEC will approve the Bitcoin spot ETF in January next year.
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SEC only wants cash mode due to concerns about money laundering and market manipulation
Bitcoin spot ETF is a “top priority” for BlackRock
SEC’s difficulty in rejecting all ETF applications due to Grayscale’s lawsuit
SEC only wants cash mode due to concerns about money laundering and market manipulation
In the past few weeks, the SEC has met with numerous ETF issuers, and the issuing institutions have also made consecutive revisions to their ETF application documents.
Unlike traditional ETFs, the SEC requires applicants for Bitcoin spot ETFs to purchase ETF shares in cash. This cash mode is considered more complex and may result in investors losing important tax benefits.
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(Explanation of the ETF | SEC’s preferred ETF cash mode, how is it different from BlackRock’s physical Bitcoin ETF?)
CoinRoutes CEO Dave Weisberger commented on this:
The SEC does not allow brokers like Robinhood and Fidelity to directly trade spot BTC. The cash mode essentially shifts the “burden of Bitcoin trading” from market makers to authorized participants such as Morgan Stanley and Goldman Sachs. This reduces competition between issuers, and sales volume will depend on which issuer has better resources and trading strategies.
Insiders who have met with the SEC explained that the SEC’s concern is that Bitcoin will be used for money laundering, market manipulation, and other illegal purposes.
Bitcoin spot ETF is a “top priority” for BlackRock
Fox Business revealed that getting the Bitcoin spot ETF approved has become a “top priority” for BlackRock. BlackRock CEO Larry Fink described Bitcoin as an “international asset” and a “store of value” tool that can rival gold in the long term.
Fox Business statistics show that BlackRock has met with the SEC five times regarding the Bitcoin spot ETF, and the SEC has held about 24 meetings with other issuers, all indicating that institutions are working hard to launch the ETF officially next year.
Although the SEC can reject all applications, industry insiders believe it is unlikely because in August, a US court ruled that the “SEC’s rejection of the GBTC’s transformation into a spot ETF” was unreasonable, and the judge claimed that the SEC’s behavior was “arbitrary and capricious.”
Fox Business points out that this is seen as an important precedent by many ETF fund managers.
(Read more: SEC Logic Flaw! Why the Court Deemed SEC’s Rejection of Grayscale Spot ETF Application Unreasonable)
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Grayscale
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Bitcoin spot ETF
Grayscale
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BlackRock submits Bitcoin spot ETF with SEC under the code name “IBIT”
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