Bernstein: The possibility of the United States approving a spot bitcoin ETF is quite high

Author: Will Canny, CoinDesk; Compiler: Songxue, Jinse Finance

Brokerage firm Bernstein said in a research note on Monday that the U.S. Securities and Exchange Commission's (SEC) stance on spot bitcoin (BTC) exchange-traded funds (ETFs) is difficult to maintain, and the spot bitcoin ETF is approved. The odds are quite high. **

Bernstein noted that the SEC already allows futures-based bitcoin ETFs, and recently approved leveraged futures ETFs, provided the futures pricing comes from a regulated exchange such as the CME.

Analysts led by Gautam Chhugani stated that SEC believes that spot bitcoin ETFs are not reliable because "spot exchanges (such as Coinbase) are not regulated by it, so spot prices are unreliable and prone to manipulation."

Despite the flood of applications, regulators have yet to approve a spot bitcoin ETF. A unit of BlackRock filed last month to form a spot bitcoin ETF. This prompted other asset managers such as Invesco and Wisdom Tree to apply or reapply for Bitcoin ETF products.

The report states that Grayscale is attempting to convert its Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF), which is currently pending in the Court of Appeals.

“The court does not appear to be convinced that futures prices are not derived from spot prices, so allowing futures-based ETFs without spot trading appears to be a difficult pill for the court to swallow,” the analysts wrote.

Additionally, the industry is now also recommending supervisory agreements between spot exchange operators and regulated exchanges such as Nasdaq, the report said.

The broker said that the lack of ** bitcoin spot ETFs has led to the growth of over-the-counter products such as the Grayscale Bitcoin Trust (GBTC), which are more expensive, less liquid and inefficient. **

“The SEC would rather introduce a regulated Bitcoin ETF, led by more mainstream Wall Street players, and subject to the oversight of existing regulated exchanges, than have to deal with a grayscale OTC trade that fills an institutional void,” the report said. product."