Lawmakers Call for Approval of Spot Bitcoin ETFs
A group of U.S. lawmakers has written a letter to the Securities and Exchange Commission (SEC) urging the regulator to approve applications for spot bitcoin exchange-traded funds (ETFs). Representatives Mike Flood, Tom Emmer, Wiley Nickel, and Ritchie Torres emphasized that the SEC should not discriminate against spot bitcoin ETPs.
The lawmakers referenced a recent court decision regarding Grayscale Investments’ attempt to convert its bitcoin trust into a spot bitcoin ETF. The court stated that Grayscale’s proposed product is similar to approved bitcoin futures ETPs in terms of regulatory factors. Despite approving bitcoin futures ETFs, the SEC has yet to approve any spot bitcoin ETFs.
The letter also highlighted SEC Chairman Gary Gensler’s call for crypto platforms to register. The lawmakers argued that market participants have responded to this call by filing applications for regulated spot bitcoin ETPs. They called on the SEC to immediately approve these applications.
Predictions and Expectations
Many industry insiders anticipate that the SEC will approve spot bitcoin ETFs in early 2022. Anthony Scaramucci, founder of Skybridge Capital, believes that every Wall Street firm will offer bitcoin ETFs to their clients in the coming years. JPMorgan analysts also expect the approval of multiple spot bitcoin ETFs simultaneously. Former SEC Chair Jay Clayton believes that it is inevitable for spot bitcoin ETFs to be approved.
Hot Take: A Step Towards Investor Protection
The push from lawmakers for the approval of spot bitcoin ETFs reflects a growing recognition of the importance of investor protection in the crypto market. By allowing regulated access to bitcoin through transparent investment products, investors can feel more secure in their participation. The potential approval of spot bitcoin ETFs signals a maturing of the industry and a willingness to accommodate the needs of traditional financial institutions. If approved, these ETFs could open the floodgates for broader adoption of cryptocurrencies and pave the way for further regulatory developments in the space.
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