Amid the rapidly growing anticipation for the launch of spot bitcoin exchange-traded funds (ETFs) in the United States, concerns have arisen among many in the bitcoin community regarding whether or not these funds will actually hold spot bitcoin.
In response to these concerns, Bloomberg Intelligence ETF analyst James Seyphart stepped forward to allay concerns, assuring investors that the current crop of spot Bitcoin ETFs would indeed hold real spot Bitcoin, if approved.
This confirmation comes on the heels of posts by many in the online Bitcoin community, raising doubts about whether the impending ETFs will hold actual Bitcoin reserves. The SEC has told Spot Bitcoin ETF filers that their applications need to include clear language for cash creations and redemptions, with no mention of in-kind creations and redemptions, FOX Businesses' Eleanor Territt reported.
This has caused many to believe that this would allow a loophole for issuers to begin partially booking ETFs, which is not the case. “There are a lot of bad Bitcoin ETFs out there. People are simply uninformed (being nice) and they are very gullible,” Seyphart said yesterday. “Say it with me: “Spot Bitcoin ETFs will hold Bitcoin.”
The impending launch of Spot Bitcoin ETFs has been a hotly debated topic in the financial space, and has been heralded as a potential game-changer for both institutional and retail investors. As speculation continues to build for Spot Bitcoin ETFs, investors remain vigilant, eagerly waiting for them to hit the market.