Let me explain the roles of Grayscale and SEC for better understanding.
Role of SEC:
SEC (Securities and Exchange Commission) is a regulating body for the securities in US. Its role is to protect the investors and to impose the regulations on securities.
SEC is just like our SEBI (Securities and Exchange Board of India). They have similar roles in regulating the securities markets, protecting investors and imposing the regulations.
Role of Grayscale:
Grayscale is a cryptocurrency investment firm that offers investment products on digital assets (cryptocurrencies). Grayscale's well known products are Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).
Previously SEC has rejected Grayscale's application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF on two occasions (June 2022 and March 2023).
Today (29th August 2023) Grayscale wins the lawsuit against SEC. After the news the Bitcoin pumped in no time. (A positive news for the Bitcoin Spot ETFs to be approved)
Currently there are many institutions waiting for the first ever Bitcoin Spot ETF approval. If this happens there will be a huge inflow into the Bitcoin which results in the increase of BTC price and Grayscale's win against SEC is good sign for the Bitcoin and crypto adoption before the bitcoin halving.
Here are the list of BITCOIN FUTURES ETFs:
ProShares Bitcoin Strategy ETF (BITO)
Valkyrie Bitcoin Strategy ETF (BTF)
VanEck Bitcoin Strategy ETF (XBTF)
Simplify Bitcoin Strategy PLUS ETF (MAXI)
ProShares Short Bitcoin Strategy ETF (BITI)
Global X Blockchain & Bitcoin Strategy ETF (BITS)
Difference between Bitcoin futures ETF and Bitcoin spot ETF:
Bitcoin futures ETF tracks the price of bitcoin futures contracts whereas Bitcoin spot ETF tracks the spot price of $BTC.
Futures ETFs are traded on regulated exchanges which helps to reduce the risk of market manipulation. However, there is still a risk of tracking error which we usually see in traditional market (Stock market) too.
Bitcoin spot ETF directly tracks the price of $BTC which means that there is no risk of tracking error, but there's no price protection from market volatility.
#Bitcoin #BitcoinETF #GBTC #Grayscale #SEC