Amid growing expectations for the launch of Spot Bitcoin exchange-traded funds (ETFs) in the United States, many in the Bitcoin community have been concerned about whether these funds will actually hold spot Bitcoin or not.
In response to these concerns, Bloomberg Intelligence ETF analyst James Seyffart stepped forward to allay fears, assuring investors that the current pool of spot Bitcoin ETFs will indeed contain real spot BTC, if approved .
This assurance follows posts from many in the Bitcoin community online, raising skepticism over whether impending ETFs will maintain Bitcoin’s actual reserves. The SEC has informed Spot Bitcoin ETF depositors that their applications must include clear language about in-cash creations and redemptions, with no mention of in-kind creations and redemptions, according to Eleanor Terrett of FOX Businesses.
This led many to believe that this would allow issuers to begin fractionally reserving the ETF, which is not the case. “There are a lot of bad takes with Bitcoin ETFs. People are just misinformed (they’re nice) and way too gullible,” Seyffart said yesterday. “Say it with me: ‘Spot Bitcoin ETFs will contain Bitcoin.’”
The impending launch of Spot Bitcoin ETFs has been a hotly debated topic in the financial sphere, touted as a potential game-changer for institutional and retail investors. As anticipation for Spot Bitcoin ETFs continues to grow, investors remain vigilant, eagerly awaiting their market introduction.