When Spot ETF?

There were lots of commentators back in the Summer of 2018 calling for a Spot Bitcoin ETF.

Over 4 years on, are we any closer?

I would say people are sitting back and keeping an eye on the Grayscale vs SEC lawsuit.

If the Exchange Traded Fund ever gets approved, it will have more of a sustained long term bullish impact on prices. The ETF will be buying ‘physical’ Bitcoin as oppose to the current Futures ETF that trades based on cash value.

We know there isn’t enough Bitcoin for everyone to own and that is a huge deal if the ETF is buying and holding ‘physical’ Bitcoin.

The argument that Grayscale are bringing against the SEC is that the:

“SEC’s logic" for denying their application to convert the Grayscale Bitcoin Trust to a Spot Bitcoin ETF is "flawed and inconsistently applied.”

Basically, the SEC has not been applying its ‘standards’ evenly to Spot Bitcoin ETFs and Bitcoin Futures based ETFs. The SEC seem to be treating them differently and in turn has violated the APA’s most basic requirements.

Why approve one and not the other?

In the words of the SEC:

“We are concerned about market manipulation and the lack of a surveillance-sharing agreement between a “regulated market of significant size” and a regulated exchange”. This is why they have rejected every Bitcoin ETF application that has landed on their desk.

I hope Grayscale use the full force of their treasury to corner the SEC, I am happy that an asset manager, one of the worlds largest, has taken on the SEC over this bullsh1t.

The SEC claim to protect investors, yet they are happy for people to blow their life savings at a Casino…madness.

Good luck Grayscale!!