US SEC prefers Bitcoin ETF cash model: expert opinion
The recent statements of Eric Balchunas, senior ETF analyst at Bloomberg, have attracted widespread market attention. He noted that many ETF applicants have updated their filings, with seven adopting the cash creation and redemption model and another seven opting for a hybrid of cash creation and physical models.
Motivation behind the cash model:
Analysts generally believe that the reason why the SEC favors the cash creation model is to reduce the number of intermediaries involved in the redemption and issuance process of actual Bitcoin. In fact, 90% of ETFs adopt the physical model, and only a handful of 10% choose cash creation.
SEC regulatory considerations:
The US SEC’s tendency may be related to regulators’ concerns about money laundering. By limiting intermediaries’ access to actual Bitcoins, the SEC is expected to further close the loop on redemptions and issuances, reducing potential money laundering risks.
Lao Lin’s opinion:
Currently, the SEC's approval standards for spot Bitcoin ETFs have attracted great attention, and investors should pay close attention to relevant trends. The SEC’s decision will directly affect the operation of Bitcoin ETFs and market liquidity, so industry experts recommend that investors carefully evaluate investment strategies and pay close attention to regulatory developments.
Future outlook:
As the crypto market continues to develop, regulatory regulation of digital assets will become a key factor in the development of the industry. Investors are advised to stay tuned and adjust their investment strategies at any time to adapt to potential market changes. 💼🔍
