Analyst: SEC likely to prioritize ‘cash create’ spot Bitcoin ETFs
A Senior Bloomberg ETF analyst speculated that the Securities and Exchange Commission favors a particular redemption model and that could be a factor for which applications get approved. The U.S. Securities and Exchange Commission (SEC) may choose to first approve spot Bitcoin ETFs with a cash create redemption structure, according to ETF expert Eric Balchunas who said that such a decision remained unconfirmed by America’s securities regulator. Cash create differs from the alternative “in-kind” option since it requires issuers to hold the dollar equivalent of every Bitcoin (BTC) offered in the ETF. Conversely, the in-kind model only mandates that the operator hold BTC with a trusted custodian. Experts have said that the latter option would be more beneficial for investors as it mitigates issuers’ operating costs and boasts better tax consequences. Balchunas noted that several issuers were positioned to offer their ETFs under the cash create model. However, Wall Stree...