- cross-posted to:
- usnews@beehaw.org
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- cross-posted to:
- usnews@beehaw.org
SEC Grapples with Approval of Bitcoin Spot ETFs
newsnotfound.comThe Securities and Exchange Commission (SEC) is currently considering the approval of Bitcoin spot Exchange-Traded Funds (ETFs), with Bloomberg ETF analysts projecting a 75% likelihood of approval by the end of 2023. However, the SEC has only approved future-based Bitcoin ETFs so far, leading to speculation and interest within the industry. Grayscale recently won a lawsuit against the SEC, alleging discrimination in the approval process, which has raised doubts about the SEC's decision-making. While the court ruling does not guarantee approval for Grayscale's application, it has created optimism for the SEC to reconsider its stance. The SEC has several options moving forward, including rescinding prior approval of Bitcoin futures ETFs, appealing the court's ruling, rejecting Grayscale's application on other grounds, or allowing a spot ETF to be approved. The SEC has delayed its decision on approving Bitcoin spot ETF applications, seeking public comments and evaluating various proposals. BlackRock's decision, expected by October 17, will likely impact the future of Bitcoin spot ETFs. The SEC's current situation has created uncertainty and speculation, with stakeholders eagerly awaiting the upcoming decision that could shape cryptocurrency investments in the United States.
Essentially, a Bitcoin spot ETF is a type of investment fund that aims to track the price of Bitcoin directly. Unlike futures-based ETFs, which derive value from contracts speculating on future Bitcoin prices, spot ETFs seek to hold actual Bitcoin. This would allow investors to buy and sell shares of the ETF on an exchange, exposing them to Bitcoin’s price movements without actually needing to purchase and store Bitcoins themselves.
In case, like me, you had no idea what a spot ETF was.
I did, but traditionally futures trading is considered ‘sketchier’ than actual underlying equities/commodities trading.
This feels backwards.