Institutional investors rejoice as there is one more way to get 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).
Teucrium Fund Group Is Behind Recently Approved Bitcoin Futures ETF. The ETF joins a growing number of approved futures ETFs, complementing ProShares, Valkyrie, and VanEck Bitcoin Futures ETFs.
All spot Bitcoin ETFs have been rejected to date. However, to an invested observer, the way the approval came about could be a boon to expectant spot investors.
The plot thickens on the path to $GBTC’s spot #bitcoin #ETF conversion…
— Sonnenshein (@Sonnenshein) April 7, 2022
The plot thickens on the way to converting a GBTC spot Bitcoin ETF…
In a Twitter thread, Grayscale CEO Michael Sonnenshein again mentioned a spot Bitcoin ETF. Ranked 71st on Cointelegraph’s Top 100 list, Sonnenshein runs 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, it should also be comfortable with a Bitcoin Spot ETF.”.
Their argument conjectures that since “all Bitcoin futures ETFs are created equal” and that Teucrium falls under a 1933 law and not the 1940 law, which the other three ETFs fall under, then the argument for filing a Bitcoin Spot ETF Gets “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
So, if the SEC is comfortable with a Bitcoin Futures ETF, it should also be comfortable with a Bitcoin Spot ETF. And they can no longer justifiably cite the Law of 40 as a differentiating factor.
Sonnenshein has long been a supporter and protagonist of the creation of a Bitcoin Spot ETF. The company shared its plans to convert the GBTC Trust into an ETF in October 2021. With more than $35 billion in assets under management, the GBTC Trust is the world’s largest in legacy finance – conversion to a spot ETF would be consequential.
The Bloomberg Analyst Eric Balchunas shares his view that it is a “good sign for spot” i.e. a spot Bitcoin ETF.
JUST IN: SEC Approves Teucrium Bitcoin Futures ETF. Remarkable 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 @CoinDesk pic.twitter.com/SZMkuMrASc
– Eric Balchunas (@EricBalchunas) April 6, 2022
Breaking: SEC Approves Teucrium Bitcoin Futures ETF. Notable because it was filed under Law 33, which Genz has said does not have enough investment protections against Law 40. So possibly this is a good sign for the point, although we still think exchanges need rules before they are give the green light. h/t @CoinDesk pic.twitter.com/SZMkuMrASc
However, as investors eagerly await a spot Bitcoin ETF, analyst Doomberg suggests that the problem may not be related to the different acts, but due to the fact that futures contracts are “cash settled”..
SEC Chairman Gary Gensler may be rejecting cash ETFs because “as long as funds flow into cash ETFs faster than they are redeemed, the net effect provides outbound dollar liquidity to those looking to cash out their Bitcoin.”.
Meanwhile, ProShares has recently filed with the SEC for its Bitcoin Short Strategy ETF. as the Bitcoin spot ETF saga continues.
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