According to Fox Business' Charles Gasparino, financial companies feel confident that the SEC will rule in favor of approving bitcoin exchange-traded funds (ETFs) after January 8, 2024.
Gasparino's post also mentioned that Bitcoin ETF shares will only be available for purchase with cash, and not also with Bitcoin. Because the regulator is “concerned about the use of ETFs as a vehicle for money laundering.” Over the past few weeks, Bitcoin ETF issuers like BlackRock have been meeting with the SEC to discuss final details for their ETFs. There was one topic in particular that the regulator was meeting with issuers on, which was in-kind versus cash creations of ETF shares.
Eric Balchunas, senior analyst at Bloomberg ETF, commented on the news, saying: “The SEC is concerned about money laundering through in-kind creations in a Bitcoin ETF, which is why they delved deeper into cash-only creation (which is a more closed system) )””.
Earlier this week, BlackRock and other ETF issuers complied with the Securities and Exchange Commission and offered their ETFs to be cash-for-cash creations. To be clear, the ETFs will hold the spot Bitcoin, but the purchase of the ETF shares will be in cash, meaning investors will be giving their money to their preferred ETF issuer who will then go out and buy the spot Bitcoin to hold in the ETF. .
“BlackRock has received cash only. This is basically final. The debate is over. The in-kind products will have to wait,” Balchunas said on Monday.
If the SEC approves the proposed Bitcoin ETFs, it will mark a major milestone in the legalization of Bitcoin and its integration into traditional investment portfolios. The move will also signal a shift in regulatory sentiment towards greater acceptance and regulation of Bitcoin.
While no official statements have been released by the SEC regarding the alleged discussions, Gasparino's post has sparked interest and optimism within the financial industry, with stakeholders eagerly anticipating potential approval around January 8.
