In case you’ve been hiding under a rock lately (which is a legitimate life choice in our current society), then you might have missed the concurrent spot Bitcoin ETF applications from massive commercial financial institutions. In the last month alone, the following institutions have filed for spot Bitcoin ETFs:
- Valkyrie Investments
- Ark Invest
And quickly after they filed, Mr. Burns (aka Gensler) denied all the applications, stating they needed additional information. Specifically, the applications needed to name surveillance partners, which are essentially responsible for providing the SEC with any market manipulation data or other unwanted behaviors to protect investors. Most of the firms quickly re-filed and named Coinbase as their surveillance partner. The irony is deep here – the SEC is currently suing Coinbase and this also sent Coinbase stock soaring after the declarations, which is another indication that Mr. Burns is super-lame and largely irrelevant.
After this, former SEC Chair Jay Clayton stated that there has been a noticeable change in the perception of futures and spot Bitcoin markets following various spot ETF applications by the prominent asset managers mentioned previously. He believes that if the disparities in protection and monitoring practices between the two products are clarified, there is a good chance that regulators in the US will approve the spot ETF applications (again, Mr. Burns is super-lame).
Clayton recently admitted that he was ‘very skeptical’ of the Bitcoin market when he was SEC Chair. However, in a clear shift of sentiment, he suggested that the current conditions are favorable for the approval of the spot ETF.
According to Clayton, it was previously believed that only the futures market provided surveillance and protections for retail investors. However, those seeking spot ETFs argue that this distinction no longer exists. Clayton stated that if applicants can prove that the spot market has intentions similar to the futures market, it would be hard to reject their applications for a Bitcoin spot ETF. This follows the precedent set by previously approved futures-based ETFs.
In Clayton’s own words – “I was very skeptical with trading in the Bitcoin market when I was SEC Chair. But if you can demonstrate that the spot market has similar efficacy to the futures market, it would be hard to resist approving a Bitcoin ETF.”
Thinking logically, it would’ve made more sense to approve the spot Bitcoin ETF first as opposed to the futures-based ETFs that are already approved. This is because futures-based ETFs use leverage (albeit only 2x or so) which makes it much easier to get rekt on large price swings, which happen regularly with Bitcoin. But as we know, the SEC isn’t actually concerned with protecting retail investors. Nooo, they are mainly concerned with pleasing the banksters. Now the banksters want spot Bitcoin ETFs, which is exactly why I personally think these Spot ETFs will be approved.
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