A positive development is underway for the two most important cryptocurrencies on the market. The approval of a new exchange traded fund (ETF) supported by Bitcoin (BTC) futures by Securities and Exchange Commission (SEC) in the US raises hopes that a spot Bitcoin ETF could follow. Furthermore, the investment bank Goldman Sachs has expanded its over-the-counter (OTC) offering of trading options for contracts based on the native Ethereum token.
The case of a Bitcoin Spot ETF
Discussions in the community about how the SEC would handle new applications for spot Bitcoin ETFs follow the approval ofTeucrium Bitcoin Futures ETF last Wednesday.
According to Erik Balchunassenior ETF analyst at Bloomberg, the approval is a “good sign for a spot ETF” given that the application was filed under the so-called ’33 law, a rule that the SEC believes does not offer adequate protection to investors .
A spot bitcoin ETF refers to an ETF based on actual bitcoins rather than futures contracts, the latter often referred to as “paper bitcoin”.
By analyzing the decision in more detail, Michael SonnensheinCEO of digital asset manager Grayscale investmentshave declared that the SEC last week cited another set of standards under Bill 33 and Bill 40 for rejecting spot Bitcoin ETFs.
Given Teucrium’s approval under Bill 33, these arguments used by the SEC have now been “significantly weakened,” Sonnenshein argued on Twitter, adding:
“Therefore, if the SEC is familiar with a Bitcoin futures ETF, it should also be comfortable with a spot Bitcoin ETF.”
He then reminded his followers that Grayscale’s own application to convert the Grayscale Bitcoin Trust into an ETF is registered under Act 33.
“This is the argument that Grayscale has put forward since we filed our application to convert GBTC to Bitcoin spot ETFs. And today that argument is even stronger. Thank you TeucriumETFs and congratulations,” Sonnenshein wrote.
Goldman Sachs grows its cryptocurrency options business
Meanwhile, investment bank Goldman Sachs said earlier this week that it plans to expand its current over-the-counter (OTC) Bitcoin options to Ethereum-based option contracts.
These comments have been made by Andrei Kazantsevglobal head of crypto trading at Goldman Sachs, who in a webinar for clients said they plan to launch cash-settled ETH options “in due course,” according to Bloomberg.
George Lewin Smith, a partner in the bank’s digital assets team, said in the same webinar that conversations with customers have increasingly focused on ETH investments. The second cryptocurrency is considered by Goldman customers to be “an easier asset class to invest in,” according to the Bloomberg article.
In a commentary on this investment banking initiative, Paolo Ardoinotechnology manager for the crypto exchange Bitfinexsaid institutional adoption of a number of digital token products is “inevitable.”
Ardoino said in comments shared with Cryptonews.com to,
“Goldman’s decision to offer over-the-counter options on Bitcoin and Ethereum is undoubtedly a response to a huge demand from investors who see the potential in cryptocurrencies.”
“While some of Bitcoin’s most vocal critics show poor technical skills in blockchain applications, smart money is moving relentlessly into this space,” Bitfinex’s CTO concluded.
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