The U.S. Securities and Exchange Commission’s (SEC) stance on Bitcoin (BTC) exchange-traded funds (ETFs) is difficult to maintain and highly likely to be approved, investment firm Bernstein said in July. It states in the investigative report on the 3rd.
Bernstein said the SEC already allowed futures-based bitcoin ETFs, and more recently leveraged ETFs, given that the futures are priced on a regulated exchange like the Chicago Mercantile Exchange (CME). approved futures ETFs.
According to analysts led by Gautam Chhugani, the SEC has said that bitcoin spot ETFs “have unreliable spot prices because spot exchanges (e.g., Coinbase) are not regulated by the SEC. It is easy to manipulate.”
Bitcoin spot ETFs have yet to be approved by regulators despite numerous applications. Other asset managers, including Invesco and Wisdom Tree, have also applied for bitcoin ETF products after a division of BlackRock filed for a spot bitcoin ETF last month. or reapplied.
The report notes that Grayscale is looking to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF).
“The authorities seem unconvinced that futures prices are not derived from spot prices, and allowing futures-based ETFs and not spot seems like a tough pill for them to swallow.” analyst writes.
Additionally, the industry is now proposing oversight agreements between spot exchange operators and regulated exchanges like Nasdaq.
The lack of Bitcoin spot ETFs has led to the growth of more expensive, illiquid and inefficient over-the-counter products like Grayscale’s GBTC, brokers said. Grayscale is owned by CoinDesk’s parent company, Digital Currency Group.
“Rather than addressing grayscale OTC products that fill the gap for institutional investors, the SEC will pursue a regulated Bitcoin market led by more mainstream Wall Street participants and subject to oversight of existing regulated exchanges. We hope to introduce ETFs,” the report said.
｜Translation: CoinDesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: Probability for US Approval of a Spot Bitcoin ETF Is Fairly High: Bernstein