It is unlikely that the United States will see a spot price exchange-traded fund (ETF) for Bitcoin (BTC) in the near future.
QCP Capital, a trading firm, expressed its opinion in its latest market update on June 22 that spot ETFs have a bleak outlook.
SEC’s Gensler presents Bitcoin ETF roadblock
The price of BTC has risen by more than 20% since BlackRock, the world’s biggest asset manager, submitted an application to list a U.S. based Bitcoin ETF.
The Securities and Exchange Commission (SEC) has so far rejected all previous applications for spot ETFs, making this the first of its kind.
QCP predicts that, while institutional involvement in Bitcoin is likely to rise, the current composition of the SEC suggests that approval of spot ETFs is improbable.
Under the leadership of current SEC Chair Gary Gensler, the organization has made legal action against major crypto exchanges such as Binance and Coinbase, making the situation more complex.
Despite Gensler being the head of the SEC, we are not confident that the ETF approval will occur in the near future, as stated in the update.
QCP’s point of view is thought-provoking, particularly as, as researchers themselves point out, BlackRock has only been denied one of its 576 SEC applications thus far.
Despite our persistent stance, there is a substantial opportunity for institutional Bitcoin and Ethereum to be incorporated into the asset management sector, and in the upcoming months and years, we will witness further progress in this regard, the update continued.
GBTC return to strength continues
As reported by Cointelegraph, repercussions stemming from BlackRock have been seen beyond just the price of Bitcoin.
Valkyrie is submitting an application for a BTC spot ETF in addition to its existing futures and miners ETFs, as part of its rush to join the market.
The Grayscale Bitcoin Trust (GBTC) is regaining its footing after its shares traded close to 50% lower than BTC/USD, and is continuing to recover the ground it lost.
On June 22, the difference between the spot price of Bitcoin and its net asset value (NAV) was at its lowest point of the year at 33.45%, as reported by CoinGlass, a monitoring resource.
QCP stated that the recent upturn in its performance was the most pronounced since late 2020, when Bitcoin surged to surpass its highest levels from 2017.
Gary Gensler’s position is in jeopardy, BlackRock’s initial Bitcoin ETF and other news: Hodler’s Digest, June 11th-17th.
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