US Delays Bitcoin ETF Launch: Why It's Bad

Briefly:

  • SEC financial regulator extended deadline for applications for the creation of Bitcoin ETF
  • Bitwise and Grayscale wanted to launch them
  • Delay is not beneficial for both markets and ordinary investors

The US Securities and Exchange Commission (SEC) postpones the decision on two applications for the creation of Bitcoin ETF. These are offers from Bitwise and Grayscale.

The commission now has more 24 days to study the documents of the candidates in more detail. Then they must either approve them or reject them. And there is still a third option – reschedule the deadline again.

What is Bitcoin ETF?

ETFs are investments that work like stocks on traditional exchanges. Due to this, even people far from digital wallets, addresses, etc. can enter the world of cryptocurrencies.

Note that several futures ETFs work legally in the USA. However, these are different things. The Bitcoin ETF will be directly linked to the BTC price on spot exchanges (such as Coinbase). Bitcoin ETFs are tied to derivatives markets and are used by investors to hedge risks and / or predict price rates.

Why Spot ETFs good for the market?

Many experts have already asked the SEC to legalize spot ETFs. Thus, Congressmen Tom Emmer and Darren Soto write in an open letter that:

“Bitcoin futures are more risky for investors, they are difficult to understand. Why are you allowing derivatives ETFs but not allowing you to start trading spot ETFs? These funds are directly based on assets and therefore provide greater protection to investors. ” We can only hope for a Christmas miracle. The Securities Commission must 100 December to consider another application – this time on ETF Kryptoin Bitcoin Trust.

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