Regulation
Bitcoin ETFs With a $100 Billion Promise Put Old Funds in Danger
- Spot products may be better proxies than futures-based funds
- Lower fees may also attract demand if spot ETFs win approval
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Spot Bitcoin ETFs haven’t even been approved in the US, and yet already some see them as an existential threat to the futures-based funds that came before them.
BlackRock Inc. leads a group of firms awaiting word from regulators on their filings to launch what would be the first US ETFs linked to the spot price of the largest cryptocurrency. Grayscale Investments is also in the mix after scoring a legal victory in its quest to convert its $16 billion Bitcoin trust into an exchange-traded fund. Proponents are optimistic that the heft of the issuers involved and Grayscale’s recent court win may finally tilt the odds in favor of these funds being approved.