Lawmakers Argue for Spot Bitcoin ETFs
A bipartisan group of US lawmakers has called on Securities and Exchange Commission (SEC) Chair Gary Gensler to “immediately” approve the listing of spot Bitcoin exchange-traded funds (ETFs).
In a letter sent to Gensler on September 26, Representatives Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres argued that the SEC is “discriminat[ing] against spot bitcoin exchange traded products” by approving ETFs linked to Bitcoin futures but not spot Bitcoin itself.
The lawmakers cited the legal precedent set by Grayscale Investments in winning a review of its own ETF offering. In June, a federal court ruled that the SEC had acted “arbitrarily and capriciously” in denying Grayscale’s application, given that the agency had already approved Bitcoin futures ETFs.
“There is no reason to continue to deny spot crypto ETF applications following the Grayscale court decision,” the lawmakers wrote in their letter to Gensler. “A regulated spot bitcoin ETP would provide increased protection for investors by making access to bitcoin safer and more transparent.”
The lawmakers also argued that the SEC’s approval of spot Bitcoin ETFs is in the public interest.
“Congress has a duty to ensure the SEC approves investment products that meet the requirements set out by Congress,” they wrote. “We urge you to approve the listing of spot-bitcoin ETPs immediately.”
Gensler has not yet responded to the lawmakers’ letter. However, he has previously expressed concerns about the volatility of spot Bitcoin prices and the potential for market manipulation.
SEC Resistance to Spot Bitcoin ETFs
Despite these concerns, there is growing pressure on the SEC to approve spot Bitcoin ETFs. In addition to the support from lawmakers, the agency has received several applications from asset managers seeking to launch spot Bitcoin ETFs.
The call from US lawmakers for the SEC to approve spot Bitcoin ETFs is a significant development. It shows that there is bipartisan support for cryptocurrency regulation and that there is a growing appetite for spot Bitcoin ETFs among investors.
The SEC has been reluctant to approve spot Bitcoin ETFs in the past, but the agency may be under pressure to reconsider its position given the legal precedent set by the Grayscale court decision and the growing support from lawmakers and investors.
If the SEC does approve spot Bitcoin ETFs, it would be a major milestone for the cryptocurrency industry. It would provide investors with a new and convenient way to invest in Bitcoin and could lead to a significant increase in investment in the asset.
The approval of spot Bitcoin ETFs would have a number of implications for the cryptocurrency industry and for investors.
For the cryptocurrency industry, it would be a sign of growing legitimacy and acceptance. It would also make it easier for investors to gain exposure to Bitcoin, which could lead to a significant increase in investment in the asset.
For investors, spot Bitcoin ETFs would offer a number of advantages. First, they would be more convenient to invest in than buying Bitcoin directly on an exchange. Second, they would offer investors the same protections as other ETFs, such as diversification and transparency.
However, it is important to note that spot Bitcoin ETFs are still subject to the same risks as Bitcoin itself. Bitcoin is a volatile asset and its price can fluctuate wildly. Investors should carefully consider their own risk tolerance before investing in spot Bitcoin ETFs.