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Bitwise Ads and Cash Creations Signal ETF Is Done Deal
Bitwise has already started its marketing campaign, even though there has been no official approval from the SEC.
New developments suggest that the approval of one or more spot BTC ETFs in the new year is almost certain to occur.
Updated filings have demonstrated that the SEC is working with different providers behind the scenes to fine-tune their ETF offerings. The process has clearly reached an advanced stage. Not only has one of the last major questions been resolved, but advertising for the products has already started.
One of the big issues on which ETF providers and the SEC have differed is cash vs in-kind creations. These are two ways of creating new ETF shares. There are different implications for tax and efficiency, but also, in this case, for the parties who would be required to handle bitcoin.
For compliance reasons, the SEC has always wanted cash creations, while BlackRock and other providers have generally held out for in-kind creations due to the tax benefits and the fact that it will give investors better bang for their buck.
It looks like BlackRock have conceded the battle in order to win the war. Yesterday, they finally agreed to cash creations.
This was the last significant point that stood in the way of approval. While it's not ideal, BlackRock evidently felt that it was worth giving some ground in order to wrap things up before Christmas, giving the SEC a minor win in the interests of ensuring the job gets done.
Bitwise Kicks Off Advertising
Another intriguing development is a new advert about bitcoin, broadcast by Bitwise. It's a short ad, featuring Jonathan Goldsmith, who is known as the "Most Interesting Man in the World" from the iconic advertising campaign for Dos Equis beer.
"You know what's interesting these days?" says Goldsmith. "Bitcoin. Look for Bitwise my friends."
While the ETF has not yet been approved, it's clear that Bitwise are warming up their audience and customers to the idea of their forthcoming product.
Now that Bitwise has pulled the trigger on marketing, we're likely to see a raft of other adverts drawing attention to bitcoin and the ETFs that will—we can assume with near 100% confidence—be coming to the market in the new year.
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