Recent news regarding Bitcoin ETFs in the US has raised interest and confusion. The SEC, the government agency responsible for approving ETFs, has a contradictory stance. They have approved ETFs based on BTC futures contracts but have consistently denied approval for those based on spot Bitcoin. This inconsistency contrasts with other countries like Canada, where spot Bitcoin ETFs have been approved without major issues. The recent approval of the 2x Bitcoin Strategy ETF by the SEC is notable because it is the first leveraged Bitcoin ETF to be accepted, although it is based on futures contracts, not spot BTC. This ETF is primarily intended for short-term speculation and is aimed at professional investors. It is expected to be available on the Chicago Board Options Exchange. The launch of this ETF is unlikely to have a significant impact on the spot BTC price as it does not involve buying actual BTC. Another Bitcoin futures ETF, BITO, has performed worse than Bitcoin itself, highlighting the management and commission costs associated with ETFs. Additionally, BlackRock, a financial giant, has filed an application with the SEC to launch a spot Bitcoin-based ETF. If approved, this ETF would require BlackRock to buy BTC in the market, potentially leading to a significant price impact. However, a final ruling from the SEC is expected to take months, and there is speculation that the launch could coincide with the 2024 halving. Some even speculate that BlackRock may have already started buying BTC at low prices earlier this year.
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