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Prospects for the launch of a Bitcoin ETF in the United States are promising, with the SEC chairman showing a preference for futures over spot.

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Prospects for the launch of a Bitcoin ETF in the United States are promising, with the SEC chairman showing a preference for futures over spot.

At the Aspen Security Forum in August this year, US SEC Chairman Gary Gensler expressed his open stance towards Bitcoin futures ETF. And yesterday, at the "Future of Asset Management" North America conference organized by the Financial Times, he reiterated his views on Bitcoin ETF.

Preference for Bitcoin Futures ETF

According to Gary Gensler's remarks in August this year, he stated that if ETFs can meet the strict regulations of the SEC for mutual funds, investors will be provided with necessary protection. Furthermore, if a Bitcoin ETF is based on futures rather than spot markets, regulatory agencies may be more open to Bitcoin ETFs.

Regarding today's meeting, he mentioned that in recent months, there have been increasing numbers of ETF applications that comply with the Investment Company Act seeking to invest in Bitcoin futures on the CME Chicago Mercantile Exchange. Gary Gensler stated:

Under the mutual oversight of other federal securities laws, the 1940 Investment Company Act provides important protections for mutual funds and ETF investors, and I look forward to reviewing such filings.

From these statements, it can be seen that Gary Gensler's attitude towards Bitcoin futures ETFs is more positive than that towards Bitcoin spot ETFs. If these Bitcoin futures ETFs that may be approved can indeed comply with the 1940 Investment Company Act, they will be required to have an independent board of directors, and affiliated persons looking to trade shares of the ETF will also face certain restrictions. This significantly enhances the protection for investors in such ETFs.

Demand for Bitcoin Futures ETF

Although Bitcoin futures ETFs are poised for launch, the demand for such products in the market may not be particularly high. According to Bloomberg analyst Eric Balchunas' Twitter, a Bitcoin futures mutual fund BTCFX has accumulated only $15 million in assets in the two months since its launch, which is far behind the Bitcoin ETF BTCC CN launched in Canada. While ETFs and mutual funds are different types of financial products, this can still be seen as a warning sign of market sentiment.

Currently, there have been cases of Bitcoin ETFs launched in various countries around the world, with Canada even introducing an Ethereum ETF. In the past few months, several U.S. asset management companies such as Ark Invest, VanEck, and Fidelity Investments are also awaiting SEC approval for their own ETFs. Judging from the attitude in the recent speeches by the SEC chairman, the launch of the first Bitcoin ETF in the U.S. may be imminent.

Platforms Responsible for Promises to Users

During the meeting, Gary Gensler also mentioned platform regulation issues, stating that cryptocurrency trading and lending platforms that promise returns to investors should not be complacent, thinking they can avoid SEC oversight. Investors in such crypto products should receive the same protections as bank depositors, insurance policyholders, and mutual fund investors to guard against fraud and market manipulation.