Amid growing anticipation for the launch of spot bitcoin exchange-traded funds (ETFs) in the United States, concerns have been raised by many in the bitcoin community about whether these funds will actually hold spot bitcoin or not.
In response to these concerns, Bloomberg Intelligence ETF analyst James Seyffart has stepped forward to allay fears, assuring investors that the current set of spot bitcoin ETFs will indeed hold real spot btc, if it is aproved.
This assurance comes in the wake of posts by many in the online bitcoin community raising skepticism over whether the impending ETFs will hold actual bitcoin reserves. The SEC told bitcoin spot ETF applicants that their applications needed to include clear language about cash creations and redemptions, with no mention of in-kind creations and redemptions, according to Eleanor Terrett of FOX Businesses.
This has led many to think that this would allow issuers to begin fractionally reserving the ETF, which is not the case. “There are a lot of bad takes on bitcoin ETFs. People are simply uninformed (being kind) and overly gullible,” Seyffart. saying yesterday. “Say it with me: 'bitcoin Spot ETFs Will Hold bitcoin.'”
The imminent launch of bitcoin spot ETFs has been a hotly debated topic within the financial sphere, heralded as a potential game-changer for institutional and retail investors. As anticipation for bitcoin spot ETFs grows, investors remain vigilant and eagerly await their introduction to the market.
