REGULATION

"BITO" launch! SEC Chairman explains why it is not a spot ETF, reminding that Bitcoin remains a highly speculative asset

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"BITO" launch! SEC Chairman explains why it is not a spot ETF, reminding that Bitcoin remains a highly speculative asset

The first Bitcoin futures ETF in the United States, "BITO," set a record on its first day of trading, with a trading volume of nearly $1 billion. SEC Chairman and ProShares CEO Simeon Hyman shared their views in a recent interview.

ProShares launched the first Bitcoin futures ETF in the U.S., "BITO," officially trading on the NYSE on the evening of October 19th (Taiwan time), achieving several milestones, as detailed below:

Bloomberg ETF analyst Eric Balchunas also noted that some listed stocks experience large investor participation and non-natural trading volumes on the first trading day. Excluding such ETFs, the first-day trading volume of "BITO" would be twice that of other ETFs.

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SEC Chairman: Bitcoin Still Highly Speculative Asset Class

SEC Chairman Gary Gensler accepted an interview with CNBC shortly after the opening of "BITO".

Why Choose a "Futures" ETF?

Gensler: I believe that as an official institution, we should uphold technical neutrality rather than policy neutrality. We try to introduce new products within the scope of investor protection as much as possible, and the "futures" you mentioned are regulated by the Commodity Futures Trading Commission (CFTC), where I served for four years.

Will a "Futures" ETF Be Less Susceptible to Fraud and Manipulation? Is This a Driving Factor?

What we have is that Bitcoin futures have been regulated by the CFTC for four years, and we can also incorporate them into the SEC's oversight and investor protection under the 80-year-old Investment Company Act of 1940. Investors should be aware that Bitcoin remains a highly volatile, highly speculative asset class.

Proshares CEO: Misunderstanding in the Market

Why Not a Spot ETF?

Simeon Hyman: I think there is a bit of a misunderstanding in the market. Many experts believe that for price discovery, the futures market is a better realm, and the CME Bitcoin futures, which are formally regulated, have higher trading volume than the largest exchange in the United States. Based on this history, we believe the ETF will perform well.

Hyman also believes that "BITO" combines the regulated futures market and the 1940 Investment Company Act, bringing more convenient investment opportunities to a wide range of long-awaited investors.

Although the SEC insists on a futures-based ETF, Grayscale officially submitted a "Spot ETF" filing last night. Additionally, asset management firm Valkyrie's "Valkyrie Bitcoin Strategy ETF BTF" officially changed its ticker to "BTFD" on 10/19, which coincidentally stands for Buy The Fxxxing Dip, a highly anticipated next Bitcoin futures ETF in the market.