Crypto chaos clouds the prospects of the US bitcoin ETF: Analysts
Crypto chaos clouds the prospects of the US bitcoin ETF: Analysts
The low chance that a US bitcoin ETF will probably have just become lower, said analysts, since the high cryptoma market volatility, which is intended by FTX's continued battles, continues.
The Bitcoin Trust (GBTC) from Grayscale Investments acts with a larger discount than ever and reached a record of around 41 % Ycharts - from about 36.5 % the day before.
James Seyffart, an ETF analyst for Bloomberg Intelligence, said that the tee was around 41 %on Thursday afternoon.
"Could argue that this would slow down the time before a Bitcoin ETF is approved, or at least reduces the probability that ETF conversion will take place soon after this FTX collapse-which leads to an expansion of the discount," Seyffart told Blockworks.
Bitcoin fell under $ 16,000 yesterday, but recovered on Thursday at 12:30 p.m.
grayscale sues the SEC because it rejected the proposed conversion of GBTC into a spot bitcoin ETF in June. Craig Salm, Chief Legal Officer from Grayscale, Blockworks previously said that the GBTC discount could be resolved by lifting the decision of the SEC.
"The inherent mechanisms of all ETFs enable them to pursue the net inventory value ... so that premiums or discounts are effectively eliminated, and we continue to be eliminated," said Salm last month.
A Grayscale spokesman did not immediately answer a request for comment.
The SEC has rejected many attempts from issuers to set up a Bitcoin ETF in the USA, while similar products were introduced in Canada, Europe and Latin America. Galaxy Digital launched a Bitcoin ETF in Brazil on Thursday via a partnership with ITAú Asset Management.
Dave Nadig, a financial futurist at the data company Vettafi, said that the most likely reason for keeping GBTC is the potential advantage of the discount closure due to the clarity of cryptor regulation or the GBTC lawsuit.
"When the story of less 'all sell Bitcoin' and more 'moment time, companies explode?'
"Can you even imagine a world in which the SEC now says: 'Oh, okay, no problem, do you have a Bitcoin ETF?"
A spokesman for the CFTC Reuters Tuesday, on which the regulatory authority monitored the potential takeover of FTX by Binance. Binance said on Wednesday that it decided to give up his plan for the purchase of the competitive exchange due to "reports on misused customer funds and presumed investigations by the US authority".
nadig added that he ironically believes that the ETF wrapper is safer than Bitcoin, which is kept in a wallet on a centralized stock exchange like FTX, is looking for capital to avoid further collapse.
"But the real world?" he said. "Crypto is currently an abomination, and therefore the supervisory authorities will react negatively for some time."
sumit roy, analyst at ETF.com, also said that the SEC crypto could be even more critical in the future, since the mood on the cryptoma market has deteriorated, which reduces the chances that GBTC will receive the green light for conversion into an ETF
"That could change if Grayscale is observed in his complaint against the Sec, but in view of the enormous tee, investors clearly don't trust that this will be the case," added Roy. "The discount could continue to rise to over 50 % if the wider cryptoma market remains pressed."
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The post "Crypto Chaos Dims Prospects of Us Bitcoin ETF: Analysts" is not a financial advice.
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