Bitcoin ETF: SEC contacts exchanges for possible approval

Bitcoin ETF: SEC contacts exchanges for possible approval

According to a report by coin-update.de, the prospect of a Bitcoin ETF trading in the United States is the central theme in the cryptocurrency industry. The latest development shows that the US Securities and Exchange Commission (SEC) has been in touch with exchanges regarding the Bitcoin spot ETF applications.

Why the SEC Interacted with Stock Exchanges This Week

Analyst Eric Balchunas reports that the financial regulator has ordered Bitcoin ETF applicants to handle the funds in a certain manner. Specifically, the SEC wants ETFs to use “cash creates” instead of the “in-kind” process. This means that instead of investing in an ETF with a basket of securities or assets, approved participants exchange cash for the shares they want. This move by the SEC is surprising, but shows that the approval process is moving forward and the SEC sees a possible path for the approval of the Bitcoin ETF.

More Bitcoin ETF delays are trickling in

Despite these developments, there are also delays in some Bitcoin ETF applications, such as the Global X and Franklin ETF applications. The SEC has postponed its decision on these applications and is awaiting public comment. This shows that the approval of a Bitcoin ETF in the United States remains uncertain.

Analysis and implications

The SEC's outreach to exchanges and delays in ETF applications are impacting the market and the cryptocurrency industry. The speculation and delays have already led to Bitcoin price fluctuations, creating uncertainty among investors. Additionally, possible approvals or rejections of Bitcoin ETFs in the US could have a significant impact on the crypto market and the acceptance of cryptocurrencies among traditional financial institutions. The developments should therefore be monitored closely as they could potentially have far-reaching implications for the industry.