Amid rapidly growing anticipation for the launch of Spot Bitcoin Exchange-Traded Funds (ETFs) in the United States, concerns have arisen from many in the Bitcoin community regarding if these funds will truly hold spot Bitcoin or not.
In response to these worries, Bloomberg Intelligence ETF analyst James Seyffart has stepped forward to allay fears, assuring investors that the current pool of spot Bitcoin ETFs will indeed hold real, spot BTC, if approved.
This assurance comes in the wake of posts by many in the online Bitcoin community, raising skepticism about whether the impending ETFs will maintain actual Bitcoin reserves. Spot Bitcoin ETF filers were told by the SEC that their applications needed to include clear language of cash creations and redemptions, with no mentions of in-kind creations and redemptions, according to FOX Businesses’ Eleanor Terrett.
This has caused many to think that this would allow a loophole for issuers to start fractionally reserving the ETF, which is not the case. “There are a lot of bad Bitcoin ETF takes. People are simply uninformed (being nice) and wayyyy too gullible,” Seyffart said yesterday. “Say it with me: ‘Spot Bitcoin ETFs WILL hold Bitcoin.'”
The imminent launch of Spot Bitcoin ETFs has been a hotly debated topic within the financial sphere, heralded as a potential game-changer for both institutional and retail investors. As the anticipation for Spot Bitcoin ETFs continues to mount, investors remain vigilant, eagerly awaiting their introduction into the market.
Source: bitcoinmagazine.com