The US securities regulator, the Securities and Exchange Commission (SEC), has held a special call with fund managers seeking its approval to launch a Bitcoin spot ETF.
Eric Balchunas, an ETF analyst at Bloomberg Intelligence, commented that it did not appear to be a large conference call, but rather individual calls between the SEC and fund managers seeking the regulator's approval to launch a spot Bitcoin ETF.
According to Balchunas, sources informed him that the SEC made “many calls” to exchanges and issuers, to reiterate its instruction that include cash creations and redemptions in proposed Bitcoin exchange-traded fundsThe expert had already pointed out that the SEC preferred cash refunds, rather than in-kind refunds, and that it has been discussing this issue with asset managers in its recent meetings.
“Cash Creates or You Will Wait”, Balchunas commented on X (formerly Twitter), referring to the fact that those managers who do not modify and adjust to this SEC requirement will probably be left behind.
Balchunas also commented that while cash creations had already been in discussions with the SEC, it was an interesting development and a “good sign” amid the hype surrounding the spot ETF.
Hong Kong is ready to accept applications for Bitcoin ETF
As the potential approval of a Bitcoin spot ETF in the United States draws closer, Hong Kong's securities regulator, the Securities and Futures Commission (SFC), and the special administrative region's central bank, the Hong Kong Monetary Authority, they said together that are prepared to accept applications for a Bitcoin Spot ETF, by those companies and management firms that want to offer their investors direct exposure to virtual assets through regulated investment products.
Hong Kong's SFC, which has already approved several cryptocurrency futures ETFs, also published a circular stating sets out the requirements for the launch of a Bitcoin spot ETFAmong these requirements, cryptocurrency transactions carried out by exchange-traded funds and the custody of assets are required to be carried out through cryptocurrency platforms licensed by the SFC or through financial institutions authorized in the city.
An interesting point highlighted in the circular issued by the SFC is that the securities regulator is willing to allow both the subscription and the reimbursement of the authorized investment funds to be carried out in kind and in cash, provided that the established requirements are met.
creations and refunds in kind The proposed US spot ETFs were one of the key objectives pursued by BlackRock, Ark Invest and Fidelity in their fund authorization applications submitted to the SEC. However, the US regulator appears unwilling to acknowledge the challenges this poses, so the asset managers have been adjusting their filings in recent weeks, applying a cash-only redemption model to their Bitcoin ETFs.
Deadline for SEC to rule on Bitcoin ETF is approaching
The meeting called by the SEC in the United States and the new statements from the SFC in Hong Kong come at a time of nervousness, enthusiasm and expectation for the crypto industry.
The deadlines for the SEC to rule on several Bitcoin ETF applications awaiting approval are drawing near.
According to the spot ETF filing schedule, less than 20 days left for the US securities regulator to rule on the application submitted by Ark Invest and 21Shares for the creation of the “ARK 21Shares Bitcoin ETF” (ARKB).
Bloomberg ETF analyst James Seyffart noted that approval of the first Bitcoin exchange-traded funds is likely to occur between January 8 and 10, 2024. “We still believe this will happen by January 10. Some issuers may be left behind”, Indian the expert through X.
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