As cryptocurrencies continue to take a sweep across the global financial space, industry veterans are showing keen interest in experimenting with new products. The latest buzz from the sector is coming for the launch of the spot Bitcoin ETF which has been a hot topic of discussion for investors and crypto firms. Recently, the long-awaited project was supported by Grayscale Investments CEO, Michael Sonnenshein who emphasized that the SEC should have no objections in giving a nod for setting up spot Bitcoin ETFs for the industry.
According to the latest rumors going around in the market, the first spot Bitcoin ETF might be launched in 2022 with due support from the SEC. The financial watchdog has somehow responded positively to the crypto domain and is willing to pay heed to the growing demand for Bitcoin Futures ETF from the users.
Recently, the SEC gave a green signal to the Teucrium Bitcoin Futures ETF project that was filed under the Securities Act of 1933. In contrast to this, other BTC ETFs that have been approved by the authority in the past were enlisted under the Investment Company Act of 1940. This development has fueled the speculations and people have started looking forward to the launch of spot Bitcoin ETFs soon.
Talking about this, Michael stated that there were many safeguards available for the products enlisted under the 1940 Act. These protections were not available for the assets within the 1933 statute. However, these protection measures never addressed the SEC’s concern over the BTC market and issues prevalent in the sector.
The spearhead is elated to see that the authorities have mended their ways and approved a 1933 Act project. This hints toward the link between the bitcoin futures and related spot markets that offer value to the futures contracts. He advocated that the SEC should take the futures ETF and the spot ETF as equal or else it shall be considered a violation of the Administrative Procedure Act.
The team is looking forward to converting its Grayscale Bitcoin Trust to a spot Bitcoin ETF. The SEC is likely to state its decision by July this year. The firm might sue the SEC in case its plea gets rejected by the financial watchdog. A similar response was given by Matt Hougan of Bitwise Asset Management. The chief stated that people are looking forward to the launch of a spot Bitcoin ETF that will give widescale exposure to the Bitcoin cluster.
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