Institutional investors rejoice, as there is one more way to gain exposure to Bitcoin (BTC). The United States Securities and Exchange Commission (SEC) announced overnight the approval of a fourth Bitcoin futures exchange-traded fund (ETF).
Fund group Teucrium is behind the most recently approved Bitcoin Futures ETF. The ETF joins a growing number of approved futures ETFs, complementing ProShares, Valkyrie and VanEck Bitcoin Futures ETFs.
Every Bitcoin spot ETF has been rejected to date. For one invested observer, however, the way in which the approval was made could be a boon for expectant spot investors.
The plot thickens on the path to $GBTC’s spot #Bitcoin#ETF conversion…
— Sonnenshein (@Sonnenshein) April 7, 2022
In a Twitter thread, Grayscale CEO Michael Sonnenshein once again banged the drum for a Bitcoin spot ETF. 71st on the list of Cointelegraph’s Top 100, Sonnenshein manages the Grayscale Bitcoin Trust, one of the main avenues for buying Bitcoin in the traditional world.
Sonnenshein tweeted that “if the SEC is comfortable with a Bitcoin futures ETF, they must also be comfortable with a spot Bitcoin ETF.”
His argument surmises that as “all Bitcoin futures ETFs are created equal” and that the Teucrium falls under a 1933 act and not the 1940 act, which the other three ETFs fall under, then the argument for filing a Bitcoin spot ETF becomes “stronger.”
Therefore, if the SEC is comfortable with a #Bitcoin futures #ETF, they must also be comfortable with a spot Bitcoin ETF. And they can no longer justifiably cite the ‘40 Act as being the differentiating factor.
— Sonnenshein (@Sonnenshein) April 7, 2022
Sonnenshein has been a proponent and protagonist for the creation of a Bitcoin spot ETF for some time. The company shared plans to convert the GBTC Trust into an ETF in October 2021. With over $35 billion in assets under management, the GBTC Trust is the largest in the legacy finance world — the conversion to a spot ETF would be consequential.
Bloomberg analyst Eric Balchunas shares his view that it‘s a “good sign for spot,” meaning a Bitcoin spot ETF.
JUST IN: SEC Approves Teucrium Bitcoin Futures ETF. Notable bc it was filed under the 33 Act, which Genz has said doesn't have enough inv protections vs 40 Act. So poss this is good sign for spot, altho we still think exchanges need regs bf he will green light. h/t @CoinDeskpic.twitter.com/SZMkuMrASc
— Eric Balchunas (@EricBalchunas) April 6, 2022
Related: SEC rejects ARK 21Shares spot Bitcoin ETF application
However, while investors wait with bated breath for a Bitcoin Spot ETF, analyst Doomberg suggests that the issue may not relate to different acts but due to the fact that futures contracts are “settled in cash.”
Gary Gensler, Chair of the SEC, may in fact be blocking the spot ETFs because “as long as funds flow into spot ETFs faster than they are redeemed, the net effect provides US dollar exit liquidity to those looking to cash out their Bitcoin.”
In the meantime, ProShares recently filed with the SEC for its Short Bitcoin Strategy ETF as the Bitcoin spot ETF saga continues.
Amid the Bitcoin ETF approval chaos, the SEC faces scrutiny over the mysteriously deleted approval tweet and alleged cybersecurity breach. Critics argue for a thorough investigation into the SEC's handling, emphasizing the need for clarity in its regulatory mandate. The ongoing battle among financial institutions to lower fees for spot Bitcoin ETFs adds another layer of competition to the unfolding situation.
SanyaIf the SEC does reject spot ETF applications, expect all applicants to sue the regulator
JinseFinanceThe U.S. Securities and Exchange Commission denied Bitcoin ETF approval after an alleged hack compromised its social media account. The incident triggered a surge and subsequent drop in Bitcoin prices, raising concerns about cybersecurity and prompting calls for increased accountability and security measures in regulatory bodies.
JoyFormer SEC Chair Jay Clayton predicts imminent approval of the first Bitcoin ETF in the U.S., highlighting market and infrastructure improvements.
Cheng YuanAnticipation builds as SEC reviews spot Bitcoin ETFs, with major players like Grayscale and Fidelity in the lead. Market optimism reflects in Bitcoin's recent price surge. Decisions expected next week hinge on meticulous SEC reviews, potentially shaping the crypto market landscape.
BerniceThe cryptocurrency market experienced a surge in trading volume surpassing $40 billion on January 3, 2023, amid ongoing concerns regarding potential SEC approval of Bitcoin ETFs. Despite uncertainties and market patterns favoring sellers, investor optimism regarding regulatory developments remains. However, the unpredictable nature of the crypto market suggests a future that is uncertain, notwithstanding the potential institutional influx if SEC approves Bitcoin ETFs.
Huang BoThe SEC appears closer to approving a spot Bitcoin ETF, with BlackRock's proposal adjustment and deepened SEC discussions signaling potential progress.
Huang BoGrayscale Investments is actively pursuing SEC approval for its Grayscale Bitcoin Trust's conversion into a spot bitcoin ETF. Recent discussions with the SEC revolve around NYSE Arca's proposed rule change. Grayscale's persistent efforts, court mandates, and engagements with BNY Mellon showcase its commitment. GBTC outlines plans for listing and ongoing share issuance. The broader industry, including major players like BlackRock and Fidelity, is also navigating the SEC approval process for spot bitcoin ETFs.
Huang Bo21Shares submitted the spot Bitcoin ETF application with Ark Investment Management in June 2021 for listing on the Cboe BZX Exchange.
CointelegraphLast month, the watchdog gave the thumbs-up to Teucrium’s Bitcoin futures ETF, which is the first such vehicle to be approved under the ’33 Act.
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