OK SEC exchange-traded fund (ETF) based on short positions in bitcoin futures is a positive signal for the crypto industry. This opinion was expressed by Grayscale Investments CEO Michael Sonnenschein.
Approval of an ETF that provides inverse exposure to #Bitcoin futures could be a positive sign for #crypto. Here’s a 🧵 on why…
— Sonnenshein (@sonnenshein) June 21, 2022
On Tuesday, June 21, trading began on the ProShares Short Bitcoin Strategy ETF (ticker symbol BITI), which allows investors to profit from the decline in the price of the first cryptocurrency.
“I am convinced that the approval of every Bitcoin-related investment product demonstrates the SEC’s increased comfort with BTC and cryptocurrencies more broadly,” Sonnenschein wrote.
This applies to ProShares ETFs as well, despite the back-exposure of the asset’s price, he said.
Sonnenschein recalled that in denying bitcoin-based spot exchange-traded funds, the regulator is citing concerns about the “maturity of the underlying markets” and potential “fraud and manipulation.”
“How can one interpret BITI’s entry into the market other than further recognition [SEC] bitcoin maturity,” Sonnenschein said.
According to him, the appearance of the ProShares fund means that the regulator considers the cryptocurrency-based derivatives market reliable enough to offer short positions on it to retail investors.
“Wouldn’t approving a spot bitcoin ETF be the next logical step?” Sonnenschein asked.
Recall that in October 2021, Grayscale sent an application to convert its GBTC bitcoin trust into an exchange-traded fund based on the spot price of the cryptocurrency. The regulator must make a decision by July 6.
In March, Sonnenschein allowed the possibility of filing a lawsuit against the SEC in the event of a refusal.
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