The US Securities and Exchange Commission (SEC) is reportedly discussing crucial technical details with financial companies that have applied for Bitcoin (BTC) exchange-traded funds (ETFs) on the spot market.
According to a new report from Reuters, industry executives say the discussion between the regulator and those who made bids for BTC ETFs is a sign that the SEC will soon approve the products.
Anonymous sources familiar with the matter told Reuters that the topics of discussion included custody arrangements, creation and redemption mechanisms and disclosure of risks to investors.
A spot market BTC ETF would give traders exposure to the crypto king through traditional financial and exchange platforms. However, the SEC rejected bids to make such products for a while, citing consumer safety.
In August, a federal judge ruled against the regulatory agency, saying it must reconsider its rejection of crypto asset manager Grayscale’s bid to create a spot market BTC ETF as a means to avoid arbitrariness and inconsistency.
Previously, the SEC had approved BTC futures ETFs, but the judge said they failed to adequately explain why futures ETFs were given the green light while those in the spot market were denied.
Major financial companies that have applied to create BTC ETFs in the spot market include Cathie Wood’s ARK Invest, the world’s largest asset manager BlackRock and mutual fund manager VanEck.
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