There's some positive news for the two biggest cryptoassets in the world. The approval of a new bitcoin (BTC) futures-backed exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) has again sparked hope that a spot-based bitcoin ETF could come next. Meanwhile, investment banking giant Goldman Sachs has taken steps to expand its offering of over-the-counter (OTC) crypto options trading to options contracts based on Ethereum’s native token ETH.
Spot bitcoin ETF argument
Discussions in the community about how the SEC would treat new applications for spot-based bitcoin ETFs follow the approval of the Teucrium Bitcoin Futures ETF on Wednesday this week.
According to Bloomberg’s senior ETF analyst Eric Balchunas, the approval is a “good sign for spot” given that the application was filed under the so-called '33 Act, a rule that the SEC has previously said does not offer sufficient investor protections.
A spot bitcoin ETF refers to an ETF that holds actual bitcoin rather than bitcoin futures contracts, with the latter often referred to as ‘paper bitcoin’.
Analyzing the decision further, Michael Sonnenshein, CEO of digital asset manager Grayscale Investments, said the SEC as recently as last week cited a different set of standards under the ’33 Act and the more commonly used ‘40 Act as its reason to continue to reject spot-based Bitcoin ETFs.
Given the approval of the Teucrium under the ’33 Act, those arguments used by the SEC have now been “significantly weakened,” Sonnenshein argued on Twitter, adding:
“Therefore, if the SEC is comfortable with a Bitcoin futures ETF, they must also be comfortable with a spot Bitcoin ETF.”
He went on to remind his followers that Grayscale’s own application to convert the Grayscale Bitcoin Trust into an ETF is registered under the ’33 Act.
“This is the argument Grayscale has continued to make since filing our application to convert GBTC to a spot Bitcoin ETF. And today that argument becomes even stronger. Thanks TeucriumETFs and congratulations,” Sonnenshein wrote.
