Bitcoin ETFs: SEC's String Attachment and Investor Costs

The Securities and Exchange Commission (SEC) is requiring Bitcoin ETF issuers to carry out transactions with cash instead of Bitcoin for in-kind redemptions, resulting in added complication and increased costs for retail investors. This decision deviates from the norm of in-kind transactions in other ETFs and could potentially make Bitcoin ETFs less attractive. The SEC's reasoning may be to minimize opportunities for manipulation or due to the agency's chairman wanting to impose stricter terms after a defeat in court. Meanwhile, the number of companies turning to blockchain-based loans has increased by 55% in 2023, Coinbase plans to appeal the SEC's rejection of its digital assets framework, and a trio of crypto Super PACs has raised $78 million for industry lobbying in the upcoming election.