The U.S. Securities and Exchange Commission reportedly engaged in several discussions with Spot Bitcoin ETF applicants prior to issuing a permit on January 10, 2024, FOX Business reported.
The SEC is reportedly ready to wave the green flag on nascent spot Bitcoin exchange-traded funds (ETFs) by a specified date. Various applicants are being consulted under the assumption of FOX Business correspondent Charles Gasparino. The SEC is considering all relevant issues.
In relation to the proposed ETF, the redemption module served as the wheel for both applicants and regulators. Applicants such as BlackRock express their willingness to provide in-kind repurchases. However, the SEC is forcing applications to be cashed to create redemptions. From the SEC’s perspective, all traces of spot repurchase must be removed.
Achieving clarity on the ETF’s redemption module appears to be the final step toward collective agreement. ETF analysts at Bloomberg reported that the SEC plans to approve several spot Bitcoin ETF products simultaneously.
The ongoing scrutiny surrounding the ETF agreement has had a favorable impact on Bitcoin valuation. The ability of companies including BlackRock, Franklin Templeton, Fidelity and others to offer ETFs that invest directly in Bitcoin is expected to attract a significant amount of institutional capital, according to analysts.