News: Operators have addressed SEC's three concerns regarding ETF, but Ethereum ETF remains in unknown status.

Media outlet The Block reported, according to sources, that companies have addressed three of the Securities and Exchange Commission's (SEC) remaining concerns regarding spot Bitcoin ETFs; however, the status of spot Ether ETFs remains unclear.

Has the Bitcoin ETF Issuer Resolved Key Issues?

Overcoming SEC Concerns about Physical vs. Cash Redemptions

It has been reported that many companies have been in close communication with the SEC to address key issues, including selecting appropriate models, determining authorized participants, and devising strategies to deal with hard forks and airdrops. These efforts are bearing fruit, with companies like Grayscale adjusting to a model preferred by the SEC for creation and redemption: Grayscale initially advocated for a physical delivery model, but has now shifted to a cash model. This model was first discussed and applied by Blackrock and the SEC.

ETF Infographic | How does the SEC-preferred cash model for ETFs differ from the physical Bitcoin ETF by Blackrock?

Publicly Naming Authorized Participants

Another significant development is the recent filing naming authorized participants. While not a common practice, this move has been acknowledged by the SEC, with key participants like Blackrock and Valkyrie publicly disclosing their important partnerships. These participants play a crucial role in the creation and redemption process of the ETF, highlighting the importance of transparency in these operations.

Managing Technological Challenges: Addressing Hard Forks and Airdrops

Issuers have reached a consensus on how to handle hard forks and airdrops. The consensus involves relinquishing rights to hard fork tokens on the blockchain to ensure the ETF operations are centralized and efficient.

Close Interaction Between Companies and Regulatory Agencies

Ongoing Discussions with the SEC

In the past week, exchanges like NYSE and Nasdaq have had active interactions with the SEC. These meetings cover various aspects of pending filings, reflecting the intensity of ongoing discussions, although it does not necessarily mean that a physically-backed Bitcoin ETF will soon be approved.

Nevertheless, ETF analysts still believe that engaging in these discussions would be meaningless if the approval probability were low, indicating that the SEC is not opposed to approval.

Different Situation for Ethereum ETFs

Uncertain Prospects for Ethereum Spot ETFs

In contrast to the progress of Bitcoin ETFs, the prospects for Ethereum spot ETFs remain uncertain. The SEC has not expressed opposition to such funds, and approval is in a state of ambiguity. This differs from the situation with Bitcoin, as the approval of futures-based ETFs has set a potential precedent for the approval process of spot Bitcoin ETFs.

Aylo: Ethereum to Hit Historic Highs in 2024, Outperforming Bitcoin

In conclusion, the development of physically-backed Bitcoin ETFs is making significant progress, with companies actively addressing SEC concerns. While challenges persist, the industry's adaptability and willingness to interact with regulatory agencies indicate a positive trend towards potential approval.