Hope for Spot BTC ETF Gets Stronger After DEFI Launched Under Securities Law

The potential for a physical backed ETF or spot ETF got a boost with the launch of the Hashdex Bitcoin Futures ETF (DEFI) on Thursday, the media said. The basis for optimism is that DEFI was introduced under the Securities Act of 1933, in contrast to other futures-backed ETFs, which were under the Investors Act of 1940.

DEFI was developed with Teucrium, which specializes in alternative investments.

Bitcoin Spot ETF Prospectus

Since the actually backed Bitcoin ETF will fall under the 1933 law, the launch of DEFI is believed to pave the way for a BTC spot ETF one day soon. However, analysts believe that the SEC may not allow the ETF to be placed immediately until it has gained oversight of crypto exchanges, the coverage said.

All other Bitcoin-backed ETFs are registered under the Investment Corporation Act of 1940. Citing better customer protections, SEC President Gary Gensler favored the 1940 law to allow derivative ETFs to be backed.

“The Securities and Exchange Commission (SEC) appears to be preparing for the possible approval of a Spotbitcoin ETF. Currently, only Bitcoin futures ETFs are allowed in the US, but the SEC is seeking comments to determine whether funds like the ARK 21 Shares should be allowed. Bitcoin ETF,” Cinthia Murphy, Director of Research at ETFThinkTank He said in a tweet.

Saudi Electricity Company rejects spot ETF offer

In June, the Securities and Exchange Commission (SEC) rejected Grayscale Investments’ bid to convert its Bitcoin credit into an immediate ETF, prompting the digital asset manager to file a commission lawsuit.

The Securities and Exchange Commission said the proposal does not meet the criteria to prevent fraudulent practices and manipulation of spot ETF products. She noted that Grayscale’s proposed ETF would be vulnerable to money laundering, election manipulation, network hacking, dissemination of disinformation, and manipulative activities through stablecoins.

In May, Ark Investment Management applied for a second Bitcoin ETF after its first proposal was rejected by the ETF a month earlier.

Similarly, global investment manager VanEck applied for a second Bitcoin ETF in June after rejecting his first proposal in November 2021. The Securities and Exchange Commission (SEC) extended its decision on VanEck’s proposal by two months in August after it received no comments or feedback on the application. When I requested it on July 13th.

In August, asset manager Monochrome received approval to launch a Bitcoin ETF in Australia. Bitcoin Monochrome ETF Will Provide Individual Investors An Instant Opportunityd Secure exposure to the performance of Bitcoin, Ethereum, and other digital assets.

At least three other cryptocurrency ETFs are listed on the Australian market – the Cosmos Purpose Bitcoin Access ETF, the ETFS 21Shares Bitcoin ETF, and the ETFS 21Shares Ethereum ETF.

Jacobi Asset Management listed Europe’s first approved and regulated Bitcoin ETF (BCOIN) at Euronext Amsterdam in August.

Fidelity, one of the world’s largest asset managers, launched an ETF in Canada in December 2021.

The Hope for Spot BTC ETF post came out stronger after DEFI was launched under the Securities Act for the first time on CryptoPotato.

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