Some analysts and trackers of the crypto market hope that the SEC will approve one of the requests submitted to it by various companies to launch the spot Bitcoin ETF, which tracks the spot price of Bitcoin unlike what is currently available based on Bitcoin derivatives such as futures and futures contracts.
Again, as we were told in the title of the article, the US Securities and Exchange Commission this week postponed decisions on two Bitcoin-traded fund proposals, one from asset management firm Bitwise and the other from Grayscale.
The SEC commissioners now have another 45 days to review and approve or reject the proposals for the Bitwise Bitcoin ETP Trust and the Grayscale Bitcoin Trust.
The third option is to postpone the decision again.
Bitcoin ETFs are investments that are traded like stocks on traditional exchanges, making them accessible to daily traders.
Instead of displaying individual stocks, ETFs track a group of stocks or other assets.
While the authority has not yet approved a bitcoin spot ETF, having rejected applications from VanEck and WisdomeTree in the past six weeks, it has allowed several bitcoin futures ETFs to begin trading this year.
But these two funds are not the same thing, as the Bitcoin ETF is linked directly to the price of Bitcoin in spot trading platforms such as Coinbase where cryptocurrencies trade whatever the price is currently, while Bitcoin futures ETFs are linked to the derivatives markets, which investors use to hedge against Risk or anticipation of price direction.
SEC Chairman Gary Gessner sent a cable to companies earlier this year that bitcoin futures ETFs would receive serious consideration because they are based on a different law than the proposed bitcoin spot ETF.
It seems that the authority is proceeding according to its president’s plan to study and approve the Bitcoin futures ETF, while the spot Bitcoin ETF is postponed each time until the legal regulations are set and clarified further.
Currently, the Kryptoin Spot Bitcoin ETF is still on the SEC’s table, whose fate will be decided by the SEC on December 24.
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