The U.S. Securities and Exchange Commission (SEC) will not be able to maintain its stance on Bitcoin-ETF for long, Bernstein analysts say, according to CoinDesk.
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The regulator has already approved exchange-traded funds based on Bitcoin futures, including leveraged ones from Volatility Shares.
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According to the report, the absence of spot ETFs on the first cryptocurrency leads to a build-up of over-the-counter products (for example, GBTC), which are ‘expensive, illiquid and inefficient’.
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‘The SEC is more likely to roll out a regulated Bitcoin ETF overseen by major Wall Street players and under the supervision of existing regulated exchanges than to deal with the over-the-counter Grayscale product’, the analysts said.
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Earlier, Invesco, VanEck, 21Shares, WisdomTree and Fidelity submitted revised proposals to the SEC for launching a spot Bitcoin ETF. This followed the Commission described previous filings as ‘unclear and incomplete’.
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Earlier, Circle CEO Jeremy Allaire predicted that the recent wave of proposals to launch spot exchange-traded funds based on digital gold would lead to regulatory approval.