Two US lawmakers Tom Emmer and Darren sent a letter to the Securities and Exchange Commission for the approval of the Bitcoin spot ETF.
As we know, the United States Securities and Exchange Commission (SEC) approved the first Bitcoin futures ETF product in the last month and after that one another. The approval of the bitcoin ETF by the SEC agency made the crypto market bullish. After the approval of the first Bitcoin futures ETF, bItcoin touched $60,000 after a long time.
But now, the matter of “Bitcoin Spot ETFs” is in highlights in the crypto space. Tom Emmer and Darren Soto, US representative, wrote a letter to ask a question from the SEC agency and SEC chairman Mr Gary Gensler that is why they are not giving their open response on the bitcoin spot ETFs based products.
According to the letter, published on 3 November, Bitcoin Spot ETF based products are safer over Bitcoin futures ETFs because of huge volatility and also Bitcoin spot ETF is safer because it will be backed by real Bitcoins.
” (Futures ETFs) are potentially much more volatile than a Bitcoin spot ETF and may impose substantially higher fees on investors due to the premium at which Bitcoin futures typically trade, as well as the cost of rolling futures contracts each month.”
Further, the letter read if the SEC agency is comfortable with the Futures ETFs then why they are not comfortable with Bitcoin spot ETFs, which is more comfortable over futures ETFs.
According to the published letter, Bitcoin spot ETFs can give better investor protection over the Bitcoin futures ETF based derivatives products.
The further letter continued with the assertion that SEC agency should have to approve Bitcoin spot ETF
“The SEC is in a position to approve Bitcoin futures ETFs, as reflected by the trading of these products, so it should also be in a position to approve Bitcoin spot ETFs”
Past opinion of SEC agency in Bitcoin spot ETF
In the recent past month, the SEC agency officials said that they will first give their decision on the bitcoin futures-based applications. And in separate, they stated that delays for the Bitcoin spot ETFs application is possible and the SEC will give its decision in November to December.
Hopefully, the time for bitcoin spot ETFs approval is near and soon the SEC agency will give its decision.