The SEC’s Trading and Markets division has reportedly engaged with exchanges regarding spot Bitcoin ETF applications. Per Eric Balchunas of Bloomberg, they advised shifting to cash creation instead of in-kind.
This move aligns with past ipple-to-take-sec-to-supreme-court-says-ceo">SEC feedback aiming to limit restrictions on broker-dealers. Applicants like WisdomTree have already amended filings based on SEC prompts.
The latest chatter further boosts odds of approval after Balchunas recently raised projections to 90% by January. The news lifted Bitcoin’s price as the market grows more confident.
Cash creation also shows the SEC’s increased comfort with spot ETF operational logistics. Previous obstacles like market manipulation concerns appear to be fading.
The SEC talks affirm progress on the long-awaited goal of a spot Bitcoin ETF in the US. While approval is still pending, regulators and industry are actively conversing to make it a reality.
