I see that many friends still have various questions about the application of BTC spot ETF. Today, I will help you briefly sort out the ins and outs of BTC spot ETF.
[What happened in the past] - [What progress has been made recently] - [What will happen in the future]
【ask for】
1. Grayscale applied N times to convert its GBTC into a real spot ETF, but all of them were rejected.
SEC Rejection
-GBTC cannot be redeemed, so there is always a price difference. Now the price difference is -13%.
Highest point in the past two years
The peak spread was +40% (bull market peak), and the most desperate spread was -45% (market peak).
The lowest point in the industry)
On the contrary, if it becomes an ETF, its price will strictly track BTC, because it is very easy to redeem and adjust positions.
2. SEC has rejected Grayscale and other parties’ BTC spot ETF applications many times
-The reasons given by the SEC are usually that BTC and exchanges are easy to manipulate, or other
Fuzzy reason
However, the SEC has approved several BTC futures ETFs, such as BITO
Other countries have also approved several BTC spot ETFs, such as Canada
Therefore, the only thing missing now is the US BTC spot ETF [recently]
3. Grayscale sued the SEC in anger, asking why it only approved futures ETFs and not
Spot ETF
Result: SEC loses the case
Once the appeal period has just passed
The decision was issued by the Court of Appeals for the District of Columbia Circuit, which is generally considered second only to the U.S. Supreme Court
4. What is the difference between spot ETF and futures ETF?
The price fluctuations of the two are very similar, both accurately tracking the BTC price and helping investors gain BTC exposure
From the product level, the fee rate of futures ETF is usually higher. After all, it is more complicated to do futures operations.
From a psychological perspective, if an institution allocates spot ETFs, in theory it actually holds BTC, but it is entrusted to the ETF manager. If it allocates futures ETFs, it seems more like short-term speculation. After all, regular investment in BTC is regular investment in real BTC, so who would invest in BTC perpetual contracts?
-So, Grayscale believes that after the SEC approved the futures ETF, the SEC’s reason that “it is easy to be manipulated” is not valid.
5. Grayscale resubmitted new materials yesterday to transform its GBTC into a real ETF
-Other applicants, such as BlackRock, which is talked about a lot
BTC ETF is a new product that is launched directly, while Grayscale converts old products into ETFs
- Grayscale used the S-3 form instead of the more commonly used S-1 form because it believes its product is mature.
【future】
6. SEC loses the case - SEC must give clear reasons, but *SEC will definitely approve
BTC Spot ETF
However, futures ETFs have been approved, so it will be difficult to write a reason for rejection
Without reason, the SEC may be forced to approve BTC spot
ETF. Of course, the SEC can continue to reject it.
Timeline? Not sure yet
Will Grayscale be criticized? GBTC's negative premium climbed to a two-year high, suggesting that this is a medium probability.
Will BlackRock's application be approved? Judging from BlackRock's past success rate, the probability is higher.
7. What changes will the approval of BTC spot ETF bring to the market?
Last time, CT misreported wrong news, which brought BTC a 10% increase. If it was true, the effect should be better.
Give traditional funds a simpler way to configure BTC, no registration required
Coinbase, no need to download BTC wallet
For Crypto, the industry does not need a large influx of traditional funds, let alone a "rush into the market". Even if these funds are only used for a "defensive allocation" of 1% of the position, it is a very strong positive capital inflow for the BTC market.
So, everyone is looking forward to this moment #xrp #etf $BTC $ETH $BNB
