Fox senior reporter Charles Gasparino posted that the US Securities and Exchange Commission (SEC) is holding a joint conference call with potential Bitcoin ETF applicants. Sources say that the SEC is requiring that cash be used to purchase ETFs instead of Bitcoin, and is requesting that issuers remove all references to physical redemption from their documents.

This means that issuers must convert their Bitcoin to cash before trading ETF shares. In other words, they cannot use Bitcoin to buy or redeem stocks.

The cash create route means that ETF issuers must convert Bitcoin to cash for each transaction, which is a longer and more complex process that requires issuers to purchase Bitcoin themselves instead of through broker-dealers.