Hope for Spot BTC ETF Gets Stronger After DEFI Launched Under Securities Law

Hope for Spot BTC ETF Gets Stronger After DEFI Launched Under Securities Law


Media reports said the potential for a physically backed ETF or spot ETF got a boost with the launch of the Hashdex Bitcoin Futures ETF (DEFI) on Thursday. The basis for optimism is that DEFI was introduced under the Securities Act of 1933, in contrast to other futures-backed ETFs, which were under the Investors Act of 1940.

DEFI was developed with Teucrium, which specializes in alternative investments.

Possibility of a Bitcoin Spot ETF

Since the physically backed Bitcoin ETF will fall under the 1933 Act, it is believed that the launch of DEFI will pave the way for a BTC spot ETF one day soon. However, analysts believe that the SEC may not allow an immediate ETF to be placed until it obtains regulatory oversight of crypto exchanges, coverage He said.

All other Bitcoin-backed ETFs are offered under the Investment Corporation Act of 1940. Citing greater customer protections, SEC President Gary Gensler favored the 1940 Act to approve derivative ETFs.

“The SEC appears to be preparing for the possibility of approving a Bitcoin spot ETF. Currently, only Bitcoin futures ETFs are allowed in the US, but the commission is seeking comments to determine whether funds like the ARK 21 should be allowed. Shares Bitcoin ETF,” Cinthia Murphy, Director of Research at ETFThinkTank He said in a tweet.

SEC rejects immediate ETF proposals

In June, the Securities and Exchange Commission (SEC) rejected Grayscale Investments’ attempt to convert its Bitcoin credit into an ETF, prompting a digital asset manager to file a lawsuit against the commission.

The Securities and Exchange Commission said the proposal does not meet the criteria set for preventing fraudulent practices and manipulation of spot ETF products. She noted that Grayscale’s proposed ETF would be vulnerable to trade laundering, whale manipulation, network hacking, disinformation dissemination, and manipulation activities through stablecoins.

In May, Ark Investment Management applied for a second Bitcoin ETF after its first proposal was rejected by the ETF a month earlier.

Similarly, global investment manager VanEck applied for a second Bitcoin ETF in June after rejecting his first proposal in November 2021. The Securities and Exchange Commission (SEC) extended its decision on VanEck’s proposal by two months in August after receiving no comment or feedback. On the app when he called on him on July 13th.

In August, asset manager Monochrome received approval to launch a Bitcoin ETF in Australia. A monochrome Bitcoin ETF will give retail investors valued Secure exposure to the performance of Bitcoin, Ethereum, and other digital assets.

At least three other spot crypto ETFs are listed on the Australian market – the Cosmos Purpose Bitcoin Access ETF, the ETFS 21Shares Bitcoin ETF, and the ETFS 21Shares Ethereum ETF.

Jacobi Asset Management listed Europe’s first approved and regulated Bitcoin ETF (BCOIN) at Euronext Amsterdam in August.

Fidelity, one of the world’s largest asset managers, launched a Bitcoin spot ETF in Canada in December 2021.

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