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Bitwise believes there is currently “no way forward” for physical trading of Bitcoin ETFs with the SEC. As such, the company has not filed with regulators at this time, said the company’s CIO Matthew Hougan. pension and investment.
However, Hougan added that he plans to launch a Bitcoin ETF if regulatory conditions become more amicable. He said:
“Spot Bitcoin ETFs are performing well in many markets around the world, and I think we will eventually see them here in the US.”
SEC strongly disagrees
The SEC is adamant that it will not approve a spot Bitcoin ETF, despite green-lighting multiple futures Bitcoin ETFs on the Chicago Mercantile Exchange.
Companies like Grayscale that want to launch physical Bitcoin ETFs should approve physical ETFs as regulators have approved futures-based ETFs in the past and both are based on the price of Bitcoin. claims.
The SEC maintains that the futures market is closely monitored and any manipulation or tampering within the market can be identified and acted upon quickly. However, regulators argue that this is not the case for spot prices as manipulation cannot be detected.
Furthermore, the regulator claims that the companies that applied for spot ETFs failed to prove a causal link between Bitcoin’s spot and futures markets.
Grayscale is currently embroiled in a legal battle with the SEC over the regulator’s rejection of a physical application for a Bitcoin ETF. The first hearing will take place on his March 7th, when the judge will question the logic behind his SEC stance and give the regulator’s attorneys clarity on how companies can meet its requirements. I asked for
Grayscale expects the lawsuit to be closed by the third quarter.
moving the goalposts
Many in the cryptocurrency industry believe that the SEC treats Bitcoin ETFs differently than other commodity-based ETFs. As a result, they believe the current version of the Commission is unlikely to approve a Bitcoin-related spot ETF, essentially giving up on that prospect until circumstances change.
SEC Commissioners Hester Peirce and Mark Uyeda recently expressed similar views.
The commissioner announced on March 10 that no spot Bitcoin ETF application was underway with regulators because companies believe they will not approve spot ETFs until the SEC has a “regulatory authority over the spot Bitcoin market.” said to have confirmed.
According to the statement:
“The Commission is using a different set of goalposts than we have used for other types of commodity-based ETPs, keeping these spot Bitcoin ETPs away from the exchanges we regulate.”
They said the SEC’s current stance could adversely affect the sector’s growth and innovation and called for a revised approach to ensure the U.S. is not left behind.
