Is a Bitcoin Spot ETF Coming? These Crypto Investing Companies Think So

Investors are looking forward to a Bitcoin (BTC-USD) spot exchange-traded fund more than any other product in the crypto market (ETF). With Bitcoin's tremendous price potential, many investors are seeking for a spot ETF that may provide them with comparable profits but avoiding the risks.

Unfortunately, the government has made it impossible to access such a fund. However, it seems that financial businesses are now optimistic that these ETFs will be approved shortly.

For a variety of reasons, crypto spot ETFs are a highly wanted commodity. Many investors are awestruck by Bitcoin's price potential; it's one of the few assets that may rise hundreds of dollars in a matter of days. As a result, these investors wish to include it in their holdings. When someone buys Bitcoin, though, the value drops just as often. By not directly holding a security, an ETF enables you to build a barrier between yourself and the volatility.

But, in the broader scheme of things, how accessible investment in crypto may become via ETFs is more significant. It is not necessary to open a wallet, connect it to an exchange, load money, and learn how to trade. Instead, consumers may simply purchase ETF shares via their preferred brokerage. This simplicity of use would help to attract a larger number of individuals to the sector.

Despite all of these advantages, the Securities and Exchange Commission (SEC) has been hesitant to approve a spot ETF due to the volatility of the crypto market as a whole. All Bitcoin ETFs currently on the market are futures ETFs; although authorities are concerned about spot funds' rapid movements, futures funds do not directly connect to Bitcoin values. While spot ETFs have the potential to be more profitable, they have yet to be approved.

A Bitcoin Exchange-Traded Fund (ETF) Could Be Launched Soon

Crypto investment businesses have been attempting for years to get clearance for a Bitcoin spot ETF with little success. However, approvals of futures ETFs last year sped up the process, and now financial companies are optimistic that a spot ETF will be available shortly.

Some of the world's largest crypto investment companies gathered at Consensus 2022 for a panel discussion on the future of the Bitcoin spot ETF. And, as Grayscale and Bitwise CEOs have said, recent SEC conduct indicates that approval is on the way.

Bitcoin spot ETFs were previously registered under the 1940 Investment Act, while Bitcoin futures ETFs were filed under the 1933 Investment Act. Of course, futures ETFs have been approved by the SEC, but spot ETFs have not. Recent successful futures ETFs, however, were registered under the 1940 Investment Act, as these executives remind out. "That's a path that ends in a spot bitcoin ETF," says Bitwise Chief Investment Officer Matt Hougan.

Grayscale ETF head David LaValle concurred with this assessment, and predicts a big turning point in the discourse in July. That's because the Securities and Exchange Commission has until July 6 to approve or refuse Grayscale's long-awaited Bitcoin spot ETF. If Grayscale receives more negative feedback, he says the business would "consider all possibilities."

It's probable that LaValle is referring to a lawsuit Grayscale is planning in the event that its application is refused. Indeed, in recent weeks, the firm has bolstered its legal staff by recruiting former US Solicitor General Don Verrilli as legal counsel. Experts think the SEC would likely approve the spot ETF next month, but it is already a foregone conclusion, with these experts claiming that the SEC would lose such a case.