Yet Another Bitcoin Spot ETF Application Rejected
There have been several applications in the past to have a bitcoin EFT approved in the US. There are already futures ETFs in the US while spot ETFs exist in Canada and Brazil.
Fidelity, Gemini, and Valkyre have all applied for ETF approvals in the past for the US market, and since we're pretty much in FUD territory right now it's only fitting that the latest application would be rejected.
I sure do like that all these negative media has come out in such a short space of time and it's done well to put a damper on sentiment and pricing.
Kicked to the curb
The U.S. Securities and Exchange Commission (SEC) refused to grant Fidelity spot bitcoin exchange-traded fund (ETF). The rejection comes a week after the SEC threw out an application for another spot bitcoin ETF filed by investment advisory firm First Trust and hedge fund SkyBridge Capital.
The rejection follows the same reasoning for previous rejections by the SEC prefers to grant licenses to ETFs that track bitcoin futures. Since futures can either be cash-settled or physical settled it puts less demand on buying and custody bitcoin than a spot ETF would
Many anticipate that a spot ETF in the US would see massive amounts of capital flow into the asset and this may not be in the interest of the US dollar in its current phase.
Why a spot ETF rejection isn't a bad thing
A large percentage of bitcoin already sits with exchanges and custody providers as it stands already. The threat of exchanges losing funds does push more people to take ownership of their coins with a self custody solution.
An ETF however, would make it very easy to own paper bitcoin as traditional brokerage accounts can offer access to the ETF. New investors may never bother to learn or dive down the rabbit hole and it could discourage many from taking ownership of their coins.
I think that the longer the ETF is delayed the better for bitcoin, I think more people need to learn how easy it is to hold their own coins and experience the power of self custody.
Leaving your coins with a 3rd party could lead to even larger honey pots that would be primed for attacks and the larger the honey pot the less likely investors would be to be made whole, since you can't print your way out.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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