Numerous bitcoin futures exchange-traded funds are currently trading in the United States, with further funds on the way.
For instance, the Securities and Exchange Commission authorized the Teucrium Bitcoin Futures ETF earlier this month, which was registered under the Securities Act of 1933. Additionally, during the previous year, other Bitcoin Futures ETFs have been authorised under the Investment Company Act of 1940.
However, a bitcoin spot ETF remained elusive. Despite the uncertainties, the market remains optimistic that the spot Bitcoin ETF will launch this year.
Grayscale Investments CEO Michael Sonnenshein addressed this situation in a 17 April interview with CNBC. He stated:
“From the SEC’s perspective, the 40 Act goods had certain safeguards that the 33 Act products did not, but those protections never addressed the SEC’s concerns about the underlying bitcoin market and the potential for fraud or manipulation.
Thus, the fact that they have expanded their thinking and authorized a 33 Act product with Teucrium negates that argument and emphasizes the connection between Bitcoin futures and the underlying Bitcoin spot markets that provide the futures contracts with their significance.”
Here is some material. In contrast to prior futures ETF applications, the aforementioned ETF was registered under both the “33 Act” (or the Securities Act of 1933) and the “34 Act” (or the Securities Exchange Act of 1934). Previous Bitcoin futures exchange-traded funds (ETFs) were registered under the “40 Act” (the Investment Company Act of 1940).
Following that, the executive expressed his excitement about a Bitcoin-based spot application. “It really is a question of when, not if,” Sonnenshein added. He stated that the SEC in the United States should view futures ETFs and spot ETFs similarly.
If this is not the case, the securities regulator is in breach of the “Administrative Procedure Act.” Even earlier in the month, the aforementioned business raised a similar red warning. Grayscale’s CEO said in a 29 March Bloomberg interview that his business would consider suing the SEC if it did not approve their Bitcoin spot ETF.
Grayscale submitted a conversion application to convert its Grayscale Bitcoin Trust to a spot Bitcoin ETF in October 2021. Although, in February of this year, I was rejected. They will, however, get a response from the SEC by July of this year. That is not the case.
According to a 2022 Bitwise/ETF Trends Survey, 82% of advisers favored a spot bitcoin ETF over a futures-based counterpart. Clearly, demand is outstripping supply.