The U.S. Securities and Exchange Commission (SEC) is reportedly discussing crucial technical details with financial firms that applied for spot market Bitcoin (BTC) exchange-traded funds (ETFs).
According to a new report by Reuters, industry executives say that the deliberation between the regulatory agency and those who placed 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 include custody arrangement, creation and redemption mechanisms and investor risk disclosures.
A spot market BTC ETF would give traders exposure to the crypto king via traditional finance and stock exchange platforms. However, the SEC for a while rejected bids to create such products, citing consumer safety.
In August, a federal judge ruled against the regulatory body, saying that it must reconsider its rejection of crypto asset manager Grayscale’s bid to create a spot market BTC ETF as a means of avoiding arbitrariness and inconsistency.
Previously, the SEC had approved futures BTC ETFs, but the judge said they failed to adequately explain why futures ETFs were greenlit while spot market ones were denied.
Marquee financial firms that have applied to create spot market BTC ETFs also include Cathie Wood’s ARK Invest, the world’s largest asset manager BlackRock and mutual fund manager VanEck.
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