Enormous asset manager estimates opportunities regarding bitcoin ETF high

A spot-based exchange-traded funds (ETF) is something the bitcoin (BTC) world has been waiting for for years as it opens the doors wide for big money. Sentiment among crypto investors regarding the arrival of such a stock exchange fund may currently be at a peak and Bernstein, a huge American asset manager, also estimates the opportunities for a bitcoin ETF to be high.

Finally bitcoin spot ETF?

Bernstein, one of the largest asset managers in the world with $650 billion under management, discussed in a research report their expectations amid the current explosion in bitcoin ETF applications. First of all, it addressed the fact why the American Securities and Exchange Commission (SEC) has so far declined to comment on a spot ETF for bitcoin.

According to Gautam Chugani, an analyst at Bernstein, the SEC would believe that a spot ETF for bitcoin is not reliable because the spot exchanges are not subject to its regulation and thus spot prices are not reliable and subject to manipulation.

To counter this argument of market manipulation, a so-called ‘surveillance sharing agreement’ included in ETF applications. This is a unique surveillance sharing agreement designed to prevent the risk of bitcoin-related market manipulation. The exchange on which the ETF is traded has the right to request all information regarding the activity of investors in the fund. According to Bernstein, this agreement could lead to a first that bitcoin investors have been waiting for years.

The SEC had returned the pile of ETF attempts on Friday due to the lack of the specific spot bitcoin exchange with which the Nasdaq and the Chicago Board Options Exchange (CBOE) had made such an agreement. Coinbase has since been named as a partner by both CBOE and Nasdaq. Nasdaq is the exchange on which BlackRock’s ETF should ultimately be traded, and the efforts of Fidelity, WisdomTree, VanEck, Ark Invest, and Invesco all run through CBOE.

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Wall Street preference

Bernstein further elaborated on the fact that the lack of a spot ETF for bitcoin leads to the growth of over the counterproducts like the Grayscale Bitcoin Trust (GBTC), which are more expensive, illiquid and inefficient, the asset manager said.

The report stated that the SEC would prefer a regulated bitcoin ETF led by Wall Street firms and overseen by existing regulated exchanges to a bitcoin fund like Grayscale’s that tries to fill the institutional void.

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