bitcoin bull Max Keyser gave his opinion on the absence of a BTC spot exchange-traded fund (ETF) in the US, saying it is “shameless” that the Securities and Exchange Commission (SEC) will continue to reject applications.
Bitcoin Shorts and Futures ETFs Approved
June 20 Pro Shares announced the release of the first U.S.-based short Bitcoin-related ETF called the ProShares Short Bitcoin Strategy ETF, which trades under the ticker symbol BITI.
ProShares CEO Michael L. Sapir said the recent market volatility has shown that bitcoin could drop in value. BITI allows US investors to take short positions through a traditional brokerage account.
“BITI provides investors who believe that the price of bitcoin will fall with the opportunity to make potential profits or hedge their cryptocurrency holdings.”
In October 2021, ProShares was the first to launch a Bitcoin-linked futures ETF trading under the ticker symbol BITO. Since then, Valkyrie, VanEck, GlobalXas well as Tevkriy launched similar products.
Because futures ETFs are based on futures contractswhich are derivative financial contracts based on an obligation to buy or sell at a predetermined date and price in the future, they may differ from the spot price.
Usually futures settlement and cash rather than by physical delivery, where the transfer of the underlying asset occurs at the expiration of the contract. As a result, it is argued, futures tend to favor speculators.
Commenting on the approval of short-term and futures ETFs, the Grayscale trust and a pension product, but not a spot ETF, an analyst Will Clemente said the SEC has an anti-bitcoin agenda.
So now there is a SHORT bitcoin ETF, a futures ETF, a closed-end fund trading at a 30%+ discount, a 401K option for bitcoin, but NO spot ETF.
It’s clear that @GaryGensler and the SEC has a program against Bitcoin.
— Will Clemente (@WCclementeIII) June 20, 2022
Keizer criticizes Gary Gensler and the SEC
Talking to Anthony Pompliano about the best business show, Keyser said futures ETFs are “notoriously terrible” and “almost never work.”
“By allowing things like bitcoin futures ETFs to exist, futures ETFs are notoriously terrible. They almost never work and are not suitable for retail, they are not even suitable for institutions.”
He continued by citing the SEC’s rationale for denying spot ETF products “false“. Specifically, Kaiser cited the SEC’s argument that bitcoin has no true price definition.
The SEC also cited a list of other reasons. For example, in November 2021 agency wrote that VanEck had failed to fulfill its obligations under the Exchange Act and the Commission’s Rules of Practice. Therefore, investors had no protection against fraud and manipulation.
Keizer asked who the SEC was working for, implying that the agency’s actions were inconsistent with an organization that wants fair and transparent markets. He also suggested that the lack of a spot ETF could be due to possible corruption.
“It seems to me that there is some element of corruption here. Obviously, many people do not want the success of Bitcoin because it challenges them and challenges the banking system. Is that what’s going on?
Credit : cryptoslate.com