Another Bitcoin futures ETF has been authorized by the US Securities and Exchange Commission; does this suggest a spot ETF is on the way?
Institutional investors rejoice: there’s now yet another method 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, a hedge fund, is behind the most recent Bitcoin Futures ETF approval. The ETF joins ProShares, Valkyrie, and VanEck Bitcoin Futures ETFs in a growing list of licensed futures ETFs.
To date, every Bitcoin spot ETF has been denied; nevertheless, one informed observer believes that the manner in which the permission was granted might be a windfall for eager spot investors.
The plot thickens on the path to $GBTC’s spot #Bitcoin #ETF conversion…
— Sonnenshein (@Sonnenshein) April 7, 2022
Grayscale CEO Michael Sonnenshein continued to stir up support for a Bitcoin spot ETF in a Twitter discussion. Sonnenshein, who is ranked 71st in Top 100, is the manager of the Grayscale Bitcoin Trust (GBTC) Trust, which is one of the major ways to acquire Bitcoin in the traditional world.
“If the SEC is okay with a Bitcoin futures ETF, they must also be comfortable with a spot Bitcoin ETF,” Grayscale CEO Michael Sonnensheinin tweeted.
His thesis is that because “all Bitcoin futures ETFs are made equal,” and the Teucrium is governed by a 1933 legislation rather than the 1940 act that governs the other three ETFs, the case for 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 advocated for the formation of a Bitcoin spot ETF, and his business recently announced intentions to convert the GBTC Trust to an ETF in October 2021. The GBTC Trust is the largest in the traditional financial industry, with over $35 billion in assets under management–converting it to a spot ETF would be significant.
Eric Balchunas, a Bloomberg analyst, believes it’s a “positive indicator for spot,” referring to 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 wait with baited breath for a Bitcoin Spot ETF, expert Doomberg says that the problem may be linked to the fact that futures contracts are “paid in cash,” rather than distinct activities.
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Because “as long as funds flow into spot ETFs quicker than they are redeemed, the net effect offers US dollar exit liquidity to individuals wishing to cash out their Bitcoin,” Gary Gensler, the SEC’s Chairperson, may be preventing the spot ETFs.
Meanwhile, ProShares just filed for its Short Bitcoin Strategy ETF with the Securities and Exchange Commission. The drama of the Bitcoin spot ETF continues.
