Bloomberg Analyst: Redemption Issues a Sticking Point in SEC Approval of Spot Bitcoin ETF
Eric Balchunas, an ETF analyst at Bloomberg, said that the redemption issue is a stumbling block for the SEC to approve a bitcoin ETF with physical backing. The issuer rejected the SEC's cash redemption request. Cash redemption means that investors' shares will be sold by the fund company and then returned in cash. BlackRock and Ark Invest, however, firmly support physical redemption, which means that market makers will receive bitcoin as a reward and then sell it for cash. Analysts say this may be more tax-efficient for investors. In any case, Bloomberg analysts still believe that the likelihood of a bitcoin ETF with physical backing being approved by January 10, 2024 is 90%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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