Rumors that the SEC will delay spot Bitcoin ETF approvals caused a sharp decline in Bitcoin and altcoins.
As BTC continued to move around $43,000 after this decline, some sources said that companies applying for the ETF had addressed three of the SEC's remaining concerns regarding spot bitcoin ETFs.
According to The Block, three sources with knowledge of the issue said that the companies applying for the spot bitcoin ETF have been working on a series of problems with the SEC over the last few weeks, and three of these problems have been resolved.
According to these sources, the issues resolved include which models to use in a spot Bitcoin ETF, such as cash or in-kind, naming authorized participants, and how to manage hard forks and airdrops.
“You need to have cash if you want to be in the first wave of approval,” one of the sources said. he said.
In the cash model, issuing companies must transfer stored Bitcoin and sell it immediately to provide cash. At this point, sources said BlackRock and some companies are trending towards adopting a cash model for the spot bitcoin ETFs they offer, and Grayscale is the latest company to adopt a cash model.
One of the sources added that Grayscale had pushed for the same method but had accepted SEC requests for approval.
Sources also stated that the problems related to airdrops and hard forks have been resolved and that Grayscale has amended the 3-S form submitted and stated that if the spot Bitcoin ETF is approved, it will not receive any tokens via hard fork or airdrop.
Sources ultimately declined to comment on the timing of when a spot Bitcoin ETF would receive approval from the SEC or whether it would be approved at all.
*This is not investment advice.
