Bitcoin ETF Hype Threatens Another Sell-the-News Fizzle

  • Similar exchange-traded products have existed for years
  • Futures-ETF launch in 2021 came right before Bitcoin hit peak
Photographer: Angel Garcia/Bloomberg
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The best argument in favor of approving new Bitcoin exchange-traded funds is that they already exist, tracking futures. Sadly for the crypto crowd, that’s also the best argument for why nobody needs a new one.

Proponents say that the arrival of a US spot ETF would open the floodgates to a new wave of investors, potentially ushering in more than $50 billion of demand. A fresh batch of applications led by asset management titan BlackRock Inc. reignited optimism that the Securities and Exchange Commission may finally give its blessing after more than a decade of denials, powering a 20% Bitcoin rally since mid-June.