US Securities and Exchange Commission, Bitwise and grayscale Delayed its decision on whether to approve Bitcoin exchange-traded funds. SEC brokers now have 45 more days to approve or reject offers of Bitwise Bitcoin ETP Trust and Grayscale Bitcoin Trust. A third option is to delay the decision again.
ETFs are investments that trade like stocks on traditional exchanges, making them accessible to everyday savers. ETFs track a group of stocks or other assets rather than offering a single stock.
The SEC lists Bitwise’s BTC ETF and Grayscale’s BTC ETF, respectively. February 1 and February 6It awaits its decision whether to approve or not.
SEC yet one bitcoin While it has not approved a spot ETF (it had rejected applications from VanEck and WisdomeTree in the past six weeks), it has allowed several Bitcoin futures ETFs this year. But these two things are not the same thing. A Bitcoin ETF is directly tied to the BTC price on spot exchanges like Coinbase, where you currently trade crypto regardless of price; Bitcoin futures ETFs depend on derivatives markets that investors use to hedge risk and/or predict price direction.
SEC Chairman Gary Genslerreported to firms earlier this year that BTC futures ETFs will be seriously considered as they are based on a different law than spot ETF offerings, namely the Investment Firm Act of 1940.
Still, many, including Congressmen Tom Emmer and Darren Soto, say Bitcoin futures are riskier for investors because they add complexity when using the same underlying price data. “If you are comfortable allowing trading in a derivatives-based ETF, we question why you are not comfortable allowing trading in spot Bitcoin-based ETFs to begin,” the representatives wrote in an open letter to Chairman Gensler. said.
“Bitcoin spot ETFs are directly asset-based, which by their nature provides more protection for investors.”
Before the new year, the crypto community Bitcoin ETF they will probably have to wait. Unless, of course, there is a miracle. The SEC must decide on the Kryptoin Bitcoin Trust ETF by December 24.