The U.S. SEC held a joint conference call with potential Bitcoin ETF applicants to ensure the use of cash when purchasing ETFs

According to a report by Charles Gasparino, senior reporter at Fox Business Network, the U.S. Securities and Exchange Commission (SEC) is holding joint conference calls with potential Bitcoin ETF applicants. Sources say that the SEC is ensuring that cash is used when purchasing ETFs instead of Bitcoin, and requires issuers to remove all implications of physical redemption from their documents. This means that issuers must convert their Bitcoins into cash before trading ETF shares. In other words, they cannot use Bitcoin to purchase or redeem stocks.

The "cash create" route implies that ETF issuers must exchange Bitcoin for cash in each transaction, which is a longer and more complex process requiring the issuer themselves to purchase Bitcoin rather than broker-dealers.