SEC Advises Exchanges to Use Cash Creates for Spot Bitcoin ETFs


SEC Provides Guidance on Spot Bitcoin ETF Applications

The Securities and Exchange Commission (SEC) has reportedly given specific guidance to exchanges regarding the listing and trading of spot bitcoin exchange-traded funds (ETFs). This development has been seen as a positive step towards the approval of spot bitcoin ETFs by the SEC.

Optimism Soars as SEC Engages with Exchanges

There is renewed optimism for the approval of spot bitcoin ETFs after reports emerged of the SEC engaging in discussions with exchanges to provide guidance on ETF applications. Bloomberg ETF analyst Eric Balchunas shared on social media that the SEC's Division of Trading and Markets had advised exchanges to use the cash creation method instead of the in-kind method for spot bitcoin ETFs.


Cash Creates Method Preferred by SEC

According to Balchunas, the SEC's preference for the cash creation method is a good sign. In cash creation, authorized participants provide cash to the ETF issuer in exchange for new ETF units. Balchunas believes that cash creation makes more sense because broker-dealers cannot deal directly in bitcoin. This method puts the onus on the issuers to transact in bitcoin and avoids the need for broker-dealers to use unregistered subsidiaries or third-party firms. He also noted that this change in preference may require some filers to adjust their plans or risk delay.

Positive Reactions and Counterarguments

Many individuals in the crypto space view the SEC's guidance as a positive development. Marshall Beard, Chief Strategy Officer at crypto exchange Gemini, sees it as a step towards clarity in the cash versus in-kind debate. On the other hand, Gabor Gurbacs, strategy advisor at Vaneck, argues that in-kind creates are more efficient and that the SEC's preference for cash creates shows a lack of understanding of the best aspects of ETFs and bitcoin.

SEC Chairman Considers Multiple Spot Bitcoin ETF Applications

SEC Chairman Gary Gensler has stated that the regulator is considering eight to ten spot bitcoin ETF applications. It is anticipated that the SEC will approve multiple spot bitcoin ETFs early next year.

In conclusion, the SEC's advice to exchanges to use cash creates for spot bitcoin ETFs is seen as a positive development by many in the crypto space. This guidance provides clarity in the ongoing debate between cash and in-kind creation methods. As the SEC progresses in its approval process, it is expected that multiple spot bitcoin ETFs will be approved in the near future.

How To

Online buying gold and silver is the best way to purchase it.

You must first understand the workings of gold before you can purchase it. It is a precious metal that is very similar to platinum. It is rare and used as money due to its durability and resistance against corrosion. It is very difficult to use and most people prefer to purchase jewelry made of it over actual bars of Gold.

There are two types today of gold coins. One is legal tender while the other is bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.

Bullion coins can only be used as investment currency. They increase in value due to inflation.


They can't be exchanged in currency exchange systems. One example is that if someone buys $100 worth gold, they get 100 grams with a $100 value. Each dollar spent by the buyer is worth 1 gram.

When you are looking to purchase gold, the next thing to know is where to get it. There are several options available if your goal is to purchase gold from a dealer. First, your local currency shop is a good place to start. You can also try going through a reputable website like eBay. You may also be interested in buying gold through private sellers online.

Individuals selling gold at wholesale prices and retail prices are known as private sellers. Private sellers charge a 10% to 15% commission per transaction. You would receive less money from a private buyer than you would from a coin store or eBay. However, this option is often a great choice when investing in gold since it gives you more control over the item's price.

Another option for buying gold is to invest in physical gold. It is easier to store physical gold than paper certificates. But, you still have to take care of it. Physical gold must be kept safe in an impassible container, such as a vault.

A bank or pawnshop can help you buy gold. A bank can offer you a loan for the amount that you need to buy gold. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks charge higher interest rates than those offered by pawn shops.

You can also ask for help to purchase gold. Selling gold is easy too. It is easy to sell gold by contacting a company like You can create a simple account immediately and begin receiving payments.


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