JUST IN: 🟠 Eric Balchunas of Bloomberg reports that the 🇺🇸 SEC is advising spot Bitcoin ETF issuers that they prefer cash creations over in-kind creations for these ETFs 👀
Cash “creates” mean the issuer would transact in cash instead of using Bitcoin directly. The SEC prefers cash creates because broker-dealers can’t directly handle Bitcoin.
This move is seen as a positive step indicating progress in the approval process, despite the potential need for adjustments by the ETF filers.
