In a significant move this month, the Securities and Exchange Commission approved nine exchange-traded funds that invest in ethereum futures contracts.
Does this mean the SEC will soon allow spot bitcoin ETFs onto the market?
Investors are anxiously waiting for the SEC's decision. In August, the SEC was ordered by a court to vacate its rejection of Grayscale's application to convert the Grayscale Bitcoin Trust into an ETF. Last week, the SEC decided not to appeal the court's ruling in the Grayscale case or require Grayscale to refile its application, which could have delayed approval for as much as a year.
Although the arrival of ethereum futures ETFs is a welcome step toward the mainstreaming of crypto, there's no assurance yet that the SEC will act immediately to approve the 10 pending spot bitcoin ETF applications.
The situation is frustrating for everyone. Everyone except SEC Chair Gary Gensler seems to understand that a spot bitcoin ETF would be in investors' best interests, and greatly enhance consumer safety and protection against fraud.
ETFs are deservedly the most popular investment vehicle in the world; they feature low costs, low account minimums, transparency, liquidity, and ease of portfolio management.
It's easy for advisors to engage in portfolio rebalancing, dollar cost averaging and tax loss harvesting.
Access to virtually every other asset class is available through ETFs — and there are even inverse, 3x and single-stock ETFs. So why not a bitcoin ETF?
Gensler's refusal has raised everyone's ire. Four members of Congress — two Republicans and two Democrats — wrote to the SEC in late September demanding that it approve these ETFs immediately.
