{"id":13964,"date":"2021-11-05T01:54:58","date_gmt":"2021-11-05T01:54:58","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/us-lawmakers-urge-sec-to-permit-trading-of-bitcoin-spot-etfs\/"},"modified":"2021-11-05T01:54:58","modified_gmt":"2021-11-05T01:54:58","slug":"us-lawmakers-urge-sec-to-permit-trading-of-bitcoin-spot-etfs","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/us-lawmakers-urge-sec-to-permit-trading-of-bitcoin-spot-etfs\/","title":{"rendered":"US Lawmakers Urge SEC to Permit Trading of Bitcoin Spot ETFs"},"content":{"rendered":"

U.S. lawmakers have called on the Securities and Exchange Commission (SEC) to approve bitcoin spot exchange-traded funds (ETFs). Since the SEC has approved the trading of bitcoin futures ETFs, the lawmakers said it \u201cshould no longer have concerns with bitcoin spot ETFs and should show a similar willingness to permit the trading of bitcoin spot ETFs.\u201d<\/strong><\/p>\n

Lawmakers Urge SEC to Permit Trading of Bitcoin Spot ETFs<\/h2>\n

U.S. Representatives Tom Emmer and Darren Soto sent a bipartisan letter to the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, Wednesday regarding bitcoin exchange-traded funds (ETFs). So far, the SEC has approved two bitcoin futures ETFs but has yet to approve any bitcoin spot ETF.<\/p>\n

Rep. Emmer said:<\/p>\n

The SEC\u2019s approach to cryptocurrency regulation has been unacceptable. While the trading of bitcoin futures ETFs is a great step forward for the millions of American investors who have been demanding regulatory clarity, it does not make sense that bitcoin spot ETFs cannot also commence trading.<\/p>\n

Noting that the SEC approved two bitcoin futures ETFs, Reps Emmer and Soto wrote: \u201cWe question why, if you are comfortable allowing trading in an ETF based on derivatives contracts, you are not equally or more comfortable allowing trading to commence in ETFs based on spot bitcoin.\u201d<\/p>\n

They explained, \u201cBitcoin spot ETFs are based directly on the asset, which inherently provides more protection for investors,\u201d adding that futures products \u201care potentially much more volatile than a bitcoin spot ETF and may impose substantially higher fees on investors.\u201d<\/p>\n

Referencing the SEC\u2019s previous reasoning for disallowing spot bitcoin ETFs, the lawmakers asserted that \u201cSince the SEC no longer has concerns with bitcoin futures ETFs,\u201d then \u201cit presumably has changed its view about the underlying spot bitcoin market because bitcoin futures are, by definition, a derivative of the underlying Bitcoin spot market.\u201d They continued:<\/p>\n

The SEC should no longer have concerns with bitcoin spot ETFs and should show a similar willingness to permit the trading of bitcoin spot ETFs.<\/p>\n

The letter also notes that while the SEC continues to deny bitcoin ETFs, \u201cnumerous spot bitcoin investment vehicles have been offered,\u201d with more than $40 billion in assets under management (AUM).<\/p>\n

\u201cHowever, because these products have been unable to register as ETFs with the SEC, public trading typically occurs at a value that is not equivalent to net asset value, and in fact, these products have recently been trading at steep discounts to their net asset value,\u201d the congressmen stressed. They elaborated:<\/p>\n

Permitting futures-based ETFs while simultaneously continuing to deny spot-based ETFs would further perpetuate these discounts and clearly go against the SEC\u2019s core mission of protecting investors.<\/p>\n

The letter concludes: \u201cThe SEC is in a position to approve bitcoin futures ETFs, as reflected by the trading of these products, so it should also be in a position to approve bitcoin spot ETFs.\u201d<\/p>\n

What do you think about the SEC approving bitcoin futures ETFs but not bitcoin spot ETFs? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, bitcoin etf, Bitcoin Futures ETF, bitcoin spot etf, darren soto, Gary Gensler, SEC, sec approves bitcoin etf, tom emmer, us congressmen<\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. lawmakers have called on the Securities and Exchange Commission (SEC) to approve bitcoin spot exchange-traded funds (ETFs). Since the SEC has approved the trading of bitcoin futures ETFs, the lawmakers said it \u201cshould no longer have concerns with bitcoin spot ETFs and should show a similar willingness to permit the trading of bitcoin spot…<\/p>\n","protected":false},"author":0,"featured_media":13965,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-13964","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/13964"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=13964"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/13964\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/13965"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=13964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=13964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=13964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}