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5 Reasons The U.S. Needs A Spot Bitcoin ETF, According To The Digital Chamber Of Commerce

Does Bitcoin Need a Spot Bitcoin ETF? Probably not. However, the US may need one or two. In other countries, full proofs of concept are already working and absorbing capital. None of these products present the problems the SEC believes a Bitcoin physical ETF poses. Moreover, there is already a future Bitcoin ETF that works fine in the US. What is the real lag of the Spot Bitcoin ETF?

Several companies are constantly applying to be the first to offer the now mythical Spot Bitcoin ETF. The SEC continues to reject their proposals left and right.Is there a reason behind all this? Digital Chamber of Commerce He explained it and turned to Chairman Gensler’s moutht, which was first picked up by Bitcoinist. However, their report contained more useful information. A series of reasons why the SEC needs to approve spot bitcoin ETFs before it’s too late.

The US needs a spot Bitcoin ETF

of “Crypto conundrum: Why won’t the SEC approve a Bitcoin ETF?,” The Digital Chamber of Commerce raises a few undeniable points. However, the document looks like a plea and then a threat. It’s a strange report, but that doesn’t mean the points it contains don’t make sense.

  • “While the SEC cannot deny the huge market demand for bitcoin (especially at the institutional level), investors looking to invest directly in bitcoin (in the absence of a bitcoin ETF) are subject to federal securities regulations. It has to do so without a protective umbrella, and has evolved over the past 80 years.”

This is in direct contradiction to Chairman Gensler’s claim that the SEC has not approved Spot Bitcoin ETFs to protect the unsophisticated public. But what the Digital Chamber of Commerce isn’t telling you is that it’s easy to self-custody Bitcoin if you accept responsibility. This is the first example.

  • “The SEC’s official justification for rejecting the application is based on the significant maturity and institutionalization of the market, the proof of concept offered by similar products operating abroad, and the robustness made by market participants. “Despite a rigorous investigation by the SEC, it remains the same as those offered in the original dismissal. The concerns expressed by the SEC are unfounded.”

The Winklevoss twins first applied for a spot in the Bitcoin ETF in 2013. According to the Chamber of Digital Commerce, when institutions realize their applications fail no matter what they do, they will stop trying. And it stifles innovation.

BTC price chart for 09/15/2022 on FX | Source: BTC/USD on TradingView.com

Bitcoin Price Discovery and CME

According to The Chamber, “The SEC has imposed an unprecedented requirement on the industry that is unique to Bitcoin, requiring applicants to prove that Bitcoin price discovery is occurring at the CME. The organization said it was just what it needed to approve a Bitcoin ETF for Spot. Well, as it turns out…

  • “Two of the industry’s most sophisticated participants have designed and implemented a research program that demonstrates that Bitcoin price discovery is indeed occurring at the CME in a statistically significant manner. However, the SEC continues to deny it.”

That’s not all. “The SEC shows significant discrepancies in its analysis of whether the Bitcoin price discovery at the CME is statistically significant.” However, the organization has “approved the listing and trading of several Bitcoin futures ETFs in October 2021,” all of which are under the CME.

The Bitcoin ecosystem has changed

The SEC knows this. The Bitcoin network is evolving, and so are the institutions around it.

  • “Many highly regulated entities operate in the Bitcoin ecosystem and have systems in place to protect client assets and avoid the types of fraud and vulnerabilities that plagued the early Bitcoin market. By enabling investors to gain exposure to Bitcoin through the purchase of Bitcoin ETFs, investors are outsourcing these due diligence requirements to experts in the field who are the issuers of the Bitcoin ETFs themselves. I can do it.”

So the chamber of commerce throws bitcoin users under the bus because it perceives bitcoin users to have a higher purpose. Perhaps the US needs a spot Bitcoin ETF and many users will benefit from this product and the convenience of paper Bitcoin. However, these users can easily perform due diligence and learn how to self-manage Bitcoin, which he can call a day.

  • “The SEC is now beginning to defend its denial of Grayscale’s petition in court. has publicly asserted that it believes it constitutes a violation of the law, and has expressed a willingness to pursue litigation should such a dismissal be issued.”

grayscale sued the SEC, the Chamber of Commerce has proposed a similar approach. “Unfortunately, it is increasingly likely that litigation or focused efforts by Congress will be required to defeat the SEC’s increasingly arbitrary and unfair treatment of this important investment product,” they report. The book concludes near the end.

Featured Image by Aditya Vyas on Unsplash  | Charts by TradingView

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5 Reasons The U.S. Needs A Spot Bitcoin ETF, According To The Digital Chamber Of Commerce

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