The Securities and Exchange Commission of the United States has approved another Bitcoin futures exchange-traded fund; does this suggest a spot ETF is on the way?
Institutional investors, rejoice: there is now another avenue for you to invest in Bitcoin (BTC). The Securities and Exchange Commission (SEC) of the United States approved a fourth Bitcoin futures exchange-traded fund overnight (ETF).
Teucrium is the fund firm behind the recently approved Bitcoin Futures ETF. The ETF joins an expanding list of licenced futures exchange-traded funds, including the ProShares, Valkyrie, and VanEck Bitcoin Futures ETFs.
Although each Bitcoin spot ETF has been denied thus far, one invested observer believes the manner in which the approval was granted could be a win for prospective spot investors.
The plot thickens on the path to $GBTC’s spot #Bitcoin #ETF conversion…
— Sonnenshein (@Sonnenshein) April 7, 2022
Grayscale CEO Michael Sonnenshein reiterated his call for a Bitcoin spot ETF in a Tweet thread. Sonnenshein is the manager of the Grayscale Bitcoin Trust (GBTC) Trust, one of the primary ways in the traditional world to purchase Bitcoin.
According to Grayscale CEO Michael Sonnensheinin, “if the SEC is okay with a Bitcoin futures ETF, they must be equally comfortable with a Bitcoin spot ETF.”
His thesis is that because “all Bitcoin futures ETFs are created equal,” and because the Teucrium is governed by the 1933 act, rather than the 1940 act, as the other three ETFs are, the case for registering a Bitcoin spot ETF becomes “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
Sonnenshein has long been a proponent and champion of the formation of a Bitcoin spot ETF; in October 2021, the business disclosed plans to convert the GBTC Trust to an ETF. The GBTC Trust is the largest in the traditional finance world, with approximately $35 billion in assets under management–conversion to a spot ETF would be significant.
According to Bloomberg analyst Eric Balchunas, this is a “positive indicator for spot,” which he refers to as a Bitcoin spot ETF.
JUST IN: SEC Approves Teucrium Bitcoin Futures ETF. Notable 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
While investors eagerly await the launch of a Bitcoin Spot ETF, expert Doomberg says that the issue may not be related to various legislation but rather to the fact that futures contracts are “cash settled.”
Gary Gensler, the SEC’s Chairman, may be banning spot ETFs because “as long as funds flow into spot ETFs quicker than they are redeemed, the net impact provides US dollar exit liquidity to investors wishing to cash out their Bitcoin.”
Meanwhile, ProShares just filed with the Securities and Exchange Commission for its Short Bitcoin Strategy ETF. The drama of the Bitcoin spot ETF continues.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
