The likelihood of approval of spot Bitcoin exchange-traded funds (ETF) in the U.S. is fairly high, according to brokerage firm Bernstein. The U.S. Securities and Exchange Commission has not yet approved one despite having received numerous applications but is seen as likely to do so. Bernstein notes that the SEC has already approved futures-based Bitcoin ETFs, signaling a way forward for spot Bitcoin ETFs. - The SEC also recently approved leverage-based ETFs on the premise that the pricing for futures comes from a regulated exchange like CME.
- Because of the lack of a Bitcoin spot ETF, it leads to the growth of over-the-counter products like the Grayscale Bitcoin Trust.
- "SEC would rather bring in a regulated Bitcoin ETF led by more mainstream Wall Street participants and with surveillance from existing regulated exchanges than having to deal with a Grayscale OTC product filling the institutional gap," the report said.
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