It’s nearly guaranteed that regulators will force Bitcoin (BTC) ETF applicants to adopt a “cash-create” model before launching their highly anticipated investment products, according to Bloomberg ETF analyst Eric Balchunas.
The decision, if true, would have major implications for the cost of managing each fund – and by extension, the fees passed down to customers.
In-Kind VS In-Cash
Since last month, BlackRock and other applicants have held multiple meetings with the Securities and Exchange Commission (SEC) concerning their “redemption model” – the process by which their ETF shares will be kept in tandem with the value of the fund’s underlying BTC.
Sponsors like BlackRock have pushed for an ‘In-Kind’ redemption model, by which a registered intermediary transfers Bitcoin (BTC) to the ETF issuer whenever it must issue new fund shares to meet market demand.
By contrast, the SEC seeks a cash-create model, which would require intermediaries to send an ETF issuer ca
We współpracy z: https://cryptopotato.com/sec-will-likely-force-cash-create-bitcoin-etfs-heres-why-that-matters/
