The Block: The issuer has resolved the remaining three concerns of the SEC regarding Bitcoin spot ETF

According to The Block, several executives of Bitcoin spot ETF issuers revealed that they have been paying attention to the feedback from the SEC and are concerned about companies like Grayscale adopting SEC-approved creation and redemption models. This has led issuers to agree to disclose authorized participants, which is considered an unusual move.

In some ETF structures, funds adopt a physical redemption model, allowing investors to exchange shares for underlying securities or commodities in order to avoid tax penalties. In meetings with the SEC, Grayscale advocated for providing both physical and cash creation and redemption models but ultimately accepted the SEC's requirement for a cash model. Other companies such as BlackRock also expressed a preference for the cash model.

Sources revealed that Grayscale strongly pushed for physical redemption during meetings before Christmas but eventually compromised with the SEC's requirements. Recently, companies hoping to list Bitcoin ETFs have announced authorized participants, including major banks such as Jane Street Capital, JP Morgan Securities LLC, Valkyrie, etc. This is seen as an issue driven by the SEC and related to their focus in ongoing dialogues.

Furthermore, progress has been made on issues such as handling hard forks and airdrops.