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ARTICLE · 05 JANUARY 2024

Bitcoin ETFs To Launch In The US: SEC Concerned

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In 2024, the U.S. anticipates the introduction of Bitcoin Exchange-Traded Funds (ETFs). Concerns arise as the SEC mandates cash redemptions over standard in-kind transactions...

United StatesTechnology

In 2024, the U.S. anticipates the introduction of Bitcoin Exchange-Traded Funds (ETFs). Concerns arise as the SEC mandates cash redemptions over standard in-kind transactions, adding complexity and increased costs for issuers. In our news alert, we explore the implications of this pivotal shift in the cryptocurrency market.

In 2024, Bitcoin Exchange-Traded Funds ("ETFs") are expected to become live in the United States, most likely in mid-to-late January. Concerns are raised, though, because the SEC is forcing ETF issuers to deviate from standard in-kind transactions and utilize cash instead of Bitcoin for redemptions. Although this brings ETF prices into line with the value of Bitcoin, it also adds complexity and increases costs for issuers, which may turn off retail investors.

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