ProShares’ Bitcoin Strategy ETF has $1.47 billion under management, a record since 2021, while BTC is around $38K. For SkyBridge Capital, this amount could explode with a spot ETF. However, Gary Gensler of the SEC remains silent.
At nearly $38,000, the Bitcoin price is at a level not seen since the Terra crash in late 2023. One event could propel it even further. This one is eagerly awaited by investors and BTC holders: the approval of a spot ETF on the cryptocurrency.
According to Anthony Scaramucci of SkyBridge Capital, hundreds of billions of dollars could potentially flow into Bitcoin and its ETFs in this eventuality. But the SEC still needs to lift the lock that bars access to these financial products.
SEC silent on spot ETF chances
The U.S. securities regulator’s next review of a spot or cash ETF is not scheduled until early next year. And there’s no point in expecting its director, Gary Gensler, to blurt out a comment on the subject.
However, on November 29, the executive was questioned by the press about ETFs at a Healthy Markets Association conference. Gensler declined to comment on the current proceedings, which he described as robust.
When an asset manager wants to go public, these exchange-traded products must be registered with the SEC and go through a registration process, much like an IPO.” he declared the previous month regarding the procedure.
Without prejudging the regulator’s conclusion, Gary Gensler reiterated the distinction between major crypto and Bitcoin.
Bitcoin futures existing exposure leverage
The SEC boss thus insists on the status of BTC, considered as a commodity and not an investment contract or security, as he qualifies other tokens.
The regulatory pressure on Bitcoin is therefore less in comparison, even if the authority has always refused spot ETFs on the grounds of manipulation risks. The arrival of long-established players such as BlackRock could remove these obstacles, provided that the guarantees provided are deemed sufficient.
While waiting for such investment products, investors still have the option of acquiring shares in futures ETFs. ProShares reports that they are already doing so.
Its Bitcoin Strategy ETF (BITO), the 1st BTC futures fund to be offered in the USA since 2021, currently has its highest level of assets under management at $1.47 billion.
BITO surpasses the previous record set in December 2021 at the height of the BTC bullrun. This crypto financial product isn’t the only one recording inflows, as the latest CoinShares report highlights. Last week, inflows jumped to $346 million.
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