However, analysts say the SEC may be concerned that the spot bitcoin ETF won’t be robust.
“Spot exchanges, such as Coinbase, are unregulated, and therefore spot prices are unreliable and subject to manipulation,” wrote analyst Gautam Chhugani,
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Bernstein says the lack of a spot ETF for bitcoin will lead to the rise of over-the-counter products such as Grayscale Bitcoin Trust (GBTC), which are more expensive, illiquid and inefficient;
“The SEC would rather introduce a regulated bitcoin-ETF led by larger Wall Street participants and overseen by existing regulated exchanges than deal with an over-the-counter product,” the report said.
Recall that last month Blackrock applied for a spot ETF for bitcoin. Fidelity, Invesco, Wisdom Tree and Valkyrie also filed similar applications.
The SEC recently called those filings “inadequate,” after which Blackrock and several other companies updated their applications and resubmitted them to the agency.
