Recent reports suggest that the SEC has held a joint conference call with all applicants of Bitcoin Spot ETF. The experts have described this development as a rare joint conference call. Also, they have highlighted how this is still a developing story.
Quick Take
- The SEC’s joint conference indicates a major leap in regulatory discussions.
- Reports suggest that multiple calls were made to ensure that issuers and exchanges adhered to a stricter model.
- These updates regarding Bitcoin ETF approval are positively impacting the price of Bitcoin.
Analysts throughout the crypto market believe that the decision regarding the approval of the first Bitcoin ETF could come as early as January 10 in the coming year. At the same time, it would also decide the accessibility of retail investors to crypto.
The Regulator Ensures Trading Restrictions
Several analysts believe that the conference call was carried out to ensure that everyone was doing Cash Creates. Some argued that the sole focus of the SEC during the meeting was to ensure that issuers convert all in-kind redemptions from their ETF filings.
This suggests that issuers would be bound to convert their Bitcoin holdings into cash before they could trade shares of the ETF. Currently, the issuers have been ordered by the SEC not to use Bitcoin to purchase or redeem shares directly. This move mirrors the regulator’s policy of prohibiting broker-dealers from engaging in Bitcoin trading.
Possible Additional Calls Made to Exchanges
The joint conference call might indeed be a big step forward. However, other reports have discussed the possibility of separate calls being made to exchanges and issuers of Cash Creates. These reports suggest that the SEC might ask them to adhere to a stricter model.
Furthermore, some analysts believe that there is a great emphasis on the SEC’s take on the Prime Execution Agent Model. It is believed that this model includes the presence of a third party buying and selling Bitcoin on behalf of the ETF.
Bitcoin Continues to Surge Ahead of ETF Approval
The price of BTC has reacted positively to progressive updates toward spot Bitcoin ETF approval. If several giants, including BlackRock, Fidelity, and others can offer ETFs that only allow the ability to directly invest in Bitcoin, the possibility of billions in institutional revenue entering the crypto space might just become a reality.
At the time of writing, Bitcoin has jumped by almost 1.69% within the previous 24 hours.
The surge has catapulted the trading price to $44,209, and the market cap currently stands at the $865 billion mark. However, the trading volume was seen to be on the lower side as it declined by a staggering 22.10% to $22.5 billion.
