- Bernstein, a $650 billion asset manager, believes there is a good chance that a spot bitcoin ETF will be approved.
- The SEC’s argument that it approves futures ETFs but denies spot ETFs is unlikely to convince a court in Grayscale v. SEC.
- Bernstein analysts said regulators are more likely to approve spot ETFs from regulated Wall Street giants than to deal with OTC products like GBTC.
On July 2nd, Gemini co-founder Cameron Winklevoss said: tweeted It’s been 10 years since the Winklevoss twins applied for the first spot Bitcoin ETF. The SEC has rejected multiple proposals for a decade, and this scenario continues despite an increasingly optimistic outlook for the cryptocurrency market.
The case was made even more prominent by a flurry of filings involving mainstream Wall Street giants such as BlackRock, Fidelity and Invesco.
Among those who have expressed optimism recently about the approval of a spot bitcoin ETF is brokerage Bernstein, Coindesk reports today.
The SEC’s approval of a Bitcoin futures ETF and all leveraged futures ETFs approved last week will take action on regulators in that they continue to reject spot ETFs, according to the company’s experts who shared their insights in the research report. There is little room left. .
For spot ETFs
The SEC still insists that futures pricing comes from regulated exchanges such as CME, as opposed to spot prices from cryptocurrency exchanges such as Coinbase. But as big asset managers signal for market surveillance agreements to deal with potential manipulation, the SEC is basically standing there.
Grayscale’s lawsuit against the SEC related to regulators’ disapproval of a proposal to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF is another reason for the likely approval.
[Read more: Grayscale to convert its GBTC to a Bitcoin ETF]
Analysts at Bernstein said the court “probably won’t.”Believe that futures prices are not derived from spot pricesThey also opined that allowing futures ETFs and not disapproving spot ETFs “could be”.Drugs that are difficult to swallow in courts. ”
Their report summarizes the outlook as follows:
“Rather than address grayscale OTC products that fill institutional gaps, SEC introduces regulated Bitcoin ETF led by more mainstream Wall Street participants and under oversight of existing regulated exchanges want to”
Market experts said the SEC’s recent prompt feedback on its recently filed proposal to re-apply for spot ETFs of several companies named Coinbase as the exchange with which Cboe BZX has a monitoring sharing agreement was a good first step. I see it as a step.
Nasdaq also re-filed BlackRock’s ETF proposal and named Coinbase as its cryptocurrency exchange with SSA.
Just in: BlackRock has re-filed its spot Bitcoin ETF, the re-file date is 6/29 and the Nasdaq has just posted it. They just added Coinbase like everyone else. pic.twitter.com/UGq46DdLgu
— Eric Balchunas (@EricBalchunas) July 3, 2023
