Crypto Execs Read the tea leaves about the approval of Bitcoin ETF on site

Crypto Execs Read the tea leaves about the approval of Bitcoin ETF on site

When-or whether-the SEC will sign the Bitcoin ETF on the spot, is unclear, but that does not stop hopeful industry participants from eagerly speculating.

industry observers said last November and again last month after the executive ordinance of President Biden asked the government authorities to examine digital assets.

The SEC approved a Bitcoin futures ETF at the beginning of this month, which was submitted by the Teucrium fund group after the 1933 Securities-the law according to which Spot-Bitcoin ETFs submitted.

After the development, other managers of the company said during the Exchange ETF conference in Miami Beach last week for the schedule for the admission of Spot-Bitcoin ETFs.

Greg King, CEO of Osprey Funds, described the Teucrium approval as "a kind of head scratch", since the agency had previously only given the green light for Bitcoin futures ETFs, which were submitted in accordance with the Investment Company Act from 1940.

"I was pretty pessimistic that a spot bitcoin ETF in the Gensler administration would be approved as soon as the futures-based ETF is ready with Proshares," King told Blockworks. "I think."

similar to the crypto asset manager Grayscale Investments, who strives to convert his Grayscale Bitcoin Bitcoin Trust (GBTC) into an ETF, Osprey Funds would like to port his bitcoin trust (OBTC) in the same way. However, the company has not yet applied for this because King said that he does not expect Grayscale to receive approval. The agency is expected to decide on the Grayscale proposal in July.

"I think we'll make another cycle with it," he said. "I am not sure whether this is another year."

The SEC has repeatedly expressed concerns about the potential for market manipulation, which according to King is “somehow unsolvable” until the entire Bitcoin trade flows through regulated US exchanges.

"We held back because we didn't see any light at the end of the tunnel," he said. "We maintain the dialogue with external lawyers and the SEC behind the scenes, but there is no reason to make a formal application until they feel that the opportunities have improved significantly."

Dave Abner, global director of business development at the crypto-depotbank Gemini, described the Teucrium approval as a “predecessor” for the fact that the supervisory authorities give the green light for a spot product.

"In my opinion, taking this step to protect different investors is a large signal from the SEC that it is preparing to take this next step," he said.

ProShares was the first US fund group to put on a Bitcoin futures ETF in October, days before Valkyrie Investments. The ETF took assets of around $ 1 billion on its first trading day.

Although some industry participants have reluctantly compared such products with a spot bitcoin ETF, Hyman said that the futures market has more liquidity than the spot trade, and added that the roller costs-or the transfer of a short-term contract into a longer-term-shrink.

"We think it is a rather robust solution, and for us it is more important than trying to read the tea leaves and think about when a place could be available," said Hyman to Blockworks.

GRG Friedman, head of ETF management and the strategy of Fidelity, shared no assumption about when the SEC could pass to allow a spot bitcoin ETF. Although he described the Teucrium acceptance as "interesting", he found that it was only "a further approval".

regulatory authorities contested Origin Bitcoin Trust of the fund in January.

"It is a new industry; it is a new room," said Friedman. "They protect and do what they should do, so it is difficult to predict what makes the barrel overflow."

Chris Matta, President of the US business of 3IQ, said that the SEC is probably waiting for a stronger official supervision of the stock exchanges. He predicted that a Spot-Bitcoin ETF would come onto the market in the second half of 2023 or 2024, and added that he would expect that an ether-futures ETF would come first.

During the conference, Michael Saylor, CEO of Microstrategy, said that the approval of a spot bitcoin ETF could be one or two years away, but he believes that there is a "more than 50 percent chance" that Grayscale has "the insider track" and first receives permission.

Grayscale-CEO Michael Sonnenshein said at the beginning of the month that the Teucrium decision "significantly weakened" the attitude of the SEC compared to a spot bitcoin ETF. The executive doubled to comments that "all options were on the table" if the SEC would reject the proposal, including the lawsuit against the agency.

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The article Crypto Execs 'Read the Tea Leaves' on Spot Bitcoin Etf Approval is not a financial advice.