May 29, 2024
SEC Approves Cash Settlement for BTC ETF; Base Network Expands
Latest Cryptocurrency News

SEC Approves Cash Settlement for BTC ETF

The United States Securities and Exchange Commission (SEC) has selected a cash creation and redemption mechanism for a potential spot Bitcoin exchange-traded fund (ETF) to address concerns about market manipulation risks. Unlike traditional ETFs, this mechanism involves creating or redeeming new shares exclusively through cash transactions, deviating from the in-kind model used in ETFs based on stocks and commodities.

The proposal, initially presented by Hashdex, aims to prevent intraday price manipulation, enhancing regulatory confidence. Asset managers such as BlackRock, ARK Invest, and Grayscale have adopted this mechanism in response to the SEC’s request.

Speculation arises regarding the SEC’s potential requirement for a regulated market of significant size, possibly involving the Chicago Mercantile Exchange for physical transactions. However, this remains unconfirmed.

In a recent meeting with applicants, the SEC set a December 29 deadline for filing final S-1 amendments, emphasizing that missing this deadline would exclude applicants from the January potential approval batch.

A notable development related to Bitcoin ETF considerations involves the resignation of Barry Silbert, CEO of Digital Currency Group (DCG). Grayscale, a crypto asset manager under DCG, filed an amended S-3 document on the same day as Silbert’s resignation from Grayscale’s board. Market analysts speculate that Silbert’s departure could impact the chances of successfully converting Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, pending SEC approval.

Meanwhile, Coinbase’s Base network exhibits consistent growth, reaching a total value locked of nearly $735 million on December 24, with a 4% weekly increase. Over the past 30 days, the network processed 6.97 million transactions, maintaining a daily speed of 3.45 transactions per second.

Chinese venture capital firm GBA Capital announced a substantial $10 billion pledge to establish a Web3 fund, focusing on virtual reality, the metaverse, and nonfungible tokens. The fund aims to transform the Guangdong-Hong Kong-Macao economic area into the world’s “meta-asset capital.”

MicroStrategy’s stock has surged over 350% in 2023, primarily driven by expectations surrounding the approval of a spot Bitcoin ETF in the United States. Analysts consider MicroStrategy’s stock as essentially a leveraged Bitcoin ETF due to its significant exposure to Bitcoin, holding 189,150 BTC.

In a broader context, the article highlights the contribution of women in the crypto industry, emphasizing decentralization and inclusivity as core principles. The crypto sector provides opportunities for women to actively participate in the tech space.

Photo by Pixabay

Related posts

Ethiopia Partners with Hong Kong for Data Mining Project

Bran Lopez

Realm of Historia Unveils Blockchain-Powered Armenian Heritage Preservation

Robert Paul

TOKEN2049: The Premier Global Web3 Event Attracts Record 10,000 Participants Worldwide

Henry Clarke

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.