The choice of a “cash create” redemption model for spot Bitcoin (BTC) ETF as mandated by the United States Securities and Exchange Commission (SEC), has birthed some misconceptions in the industry, prompting Bloomberg’s Senior ETF Analyst James Seyffart to take out time to correct a few of these errors on the X app.
Debunking Key Bitcoin ETF Myths
With many of the applicants for the Bitcoin ETF product now succumbing to the SEC’s Cash Creates demand, it looks like members of the public believe adopting this redemption model means the fund will not hold Bitcoin.
Some others perceive that the Bitcoin ETF product will act as a fractional reserve product upon approval. However, Seyffart emphasized clearly that “Spot Bitcoin ETFs WILL hold Bitcoin.”
In response to this clarification, some crypto X members had several questions to ask including one individual who wanted to know if the ETF issuers will publish on-chain addresses so that the public can check and verify how the
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