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The US Securities and Exchange Commission (SEC) reportedly held a joint conference call with spot Bitcoin ETF filers. Fox Business' senior correspondent, Charles Gasparino, shared an update on the development. Calling it a "rare joint conference call," Gasparino noted that it is a developing story. He previously underlined that the decision on the spot ETF could come by January 10 and would decide retail investors' access to crypto. Also Read: BTC Spot ETF: Theories Emerge About SEC's Potentially Conditional Green Light In a follow-up report, Fox's Eleanor Terrett also shared a significant update based on sources. According to her, the call was to make sure "everyone is doing cash creates." Terrett revealed that the SEC's focus during the meeting was on ensuring that issuers convert all "in-kind redemptions" from their ETF filings. Terrett explained, "It means that the issuers have to convert their Bitcoin to cash before trading shares of the ETF." In simpler terms, based on the report, issuers have been directed by the SEC to not use Bitcoin directly to purchase or redeem the shares. This aligns with the SEC's current policy, which does not permit broker-dealers to engage in Bitcoin trading. The development is significant for the cryptocurrency market as SEC's cautious rejection in the past has converted to dialogue. By mandating cash conversions, the SEC could be aiming to mitigate the risks before an impending approval. With the deadline for the SEC's decision looming on several ETF filings, the joint conference was being considered a big step. However, Bloomberg's senior analyst Eric Balchunas reported that it wasn't a joint conference call between the SEC and the issuers. Instead, he reports that many separate calls were made to the exchanges and issuers on Cash Creates. Additionally, it is being reported that the "SEC may be asking issuers to adhere to a more strict model." Balchunas also highlighted that the approval window of January 8-10 remains the same due to the comment period on late filers. There's a particular focus on the SEC's take on the Prime Execution Agent model. This model involves a third party buying and selling Bitcoin on behalf of the ETF, according to Bloomberg's James Seyffart. Based on the new guidance, filers like BlackRock might race to update their documentation. Seyffart noted that Bitwise Invest was the first to switch to the In-Kind model in this latest wave. This is a developing story

Sentiment

Bearish/Bullish

13.01.24 07:54

by coingape.com

Vanguard May Reconsider Bitcoin Stance, Analyst Suggests

Bloomberg analyst predicts Vanguard may shift its anti-Bitcoin stance amid market changes and the need for diverse portfolios. Vanguard, a renowned investment firm, is speculated to shift its longstanding anti-Bitcoin stance, according to insights from Bloomberg's senior analyst Eric Balchunas. Despite Vanguard's current direction, Balchunas hints at possibly reevaluating this policy in the foreseeable future, aligning with the firm's expanding advisory services and the need for diverse investment portfolios. Vanguard's current approach towards Bitcoin and cryptocurrencies remains firmly resistant. The firm has recently made headlines by restricting customer access to the newly introduced spot Bitcoin Exchange-Traded Funds (ETFs). This decision aligns with their past actions, notably removing Bitcoin futures ETFs from their platform. According to a Vanguard spokesperson, this move aligns with the company's core values, focusing on products and services catering to long-term investors' needs. This stance, however, has not gone without consequence. Recent reports indicate that some Vanguard customers have started transferring their funds to other firms, seeking investment opportunities in the burgeoning cryptocurrency market. Despite these developments, Vanguard continues to uphold its cautious approach towards digital assets, reflecting the cautious perspective of its founder, Jack Bogle, who in 2017 labeled Bitcoin as a "plague." While Vanguard maintains its conservative stance, Eric Balchunas of Bloomberg foresees a gradual change in the company's philosophy. Balchunas notes that the growing emphasis on wealth growth and the necessity for diversified investments could nudge Vanguard towards reconsidering alternative asset classes like Bitcoin and other cryptocurrencies. This shift, he suggests, would be a strategic move to broaden their advisory business and cater to an evolving investment landscape. Balchunas's perspective is noteworthy, given the increasing institutional interest in cryptocurrencies. This trend is seen in contrast to Vanguard's current trajectory, but it highlights the dynamic nature of investment strategies in response to market demands and opportunities. Intriguingly, Vanguard's investment portfolio presents a contrasting picture. Despite its skepticism towards cryptocurrencies, the firm has significantly invested in MicroStrategy shares. MicroStrategy, known for its substantial Bitcoin holdings, is a key crypto player. As of September 2023, Vanguard holds over 1 million shares in MicroStrategy, valued at approximately $547 million, making it the second-largest institutional shareholder with an 8.24% ownership share. This investment is particularly notable given MicroStrategy's status as the leading public holder of Bitcoin, with an estimated 190,000 BTC valued near $6 billion. Vanguard's substantial stake in a company deeply entrenched in cryptocurrency raises questions about its investment strategy and potential openness to digital assets.