According to The Block, the U.S. Securities and Exchange Commission (SEC) has been working with ETF issuers in recent weeks to resolve three major concerns related to ETFs, including: which creation and redemption model to adopt, which institutions to designate as authorized participants (APs), and how to handle hard forks and airdrops.
Regarding the issue of “which creation and redemption model to adopt,” it has been discussed for a long time. Due to tax and procedural advantages, most issuers prefer the “in-kind model,” but the SEC insists that issuers must choose the “cash model.” It was previously reported that the SEC issued a notice stating that if issuers want to be on the first approved list, they must amend their prospectus and adopt the “cash model.” Ultimately, all issuers responded to this requirement, and even Grayscale, which has always insisted on using the in-kind model, reportedly amended its S-3 document on December 26 to adopt the cash model.
On the other hand, issuers have also begun to select financial institutions in recent weeks to act as “authorized participants” in their proposed Bitcoin ETFs. It is reported that Grayscale is currently in talks with companies including JPMorgan Chase and Goldman Sachs, while BlackRock previously designated JPMorgan Securities as the authorized participant for its proposed Bitcoin ETF, including Jane Street Capital.
The final issue that has been resolved is how to deal with hard forks and airdrops on the Bitcoin network. Sources revealed that issuers have agreed for their trusts to waive any rights related to hard forks, including forked coin airdrops. For example, on December 26, Grayscale amended its Form 3-S to stipulate that its Bitcoin spot ETF, if approved, will not receive any tokens through hard forks or airdrops.
Successful Conclusion of CoinEx Taiwan’s 7th Anniversary Celebration, Embracing the Arrival of the Web3 Era Hand in Hand with Users
Since its establishment in 2017, CoinEx has been a professional cryptocurrency trading pla…