BCGAME - Free 5BTC Daily Bonus!With the recent launch of the first bitcoin futures-based ETF in the US, has the market started speculation about what's next: an ethereum (ETH) ETF, a spot-based bitcoin ETF or something else?
for many analysts, ETH should be the next digital asset in line to have an exchange-traded fund (ETF). After all, the asset, like bitcoin, is traded on the regulated futures market that is the Chicago Mercantile Exchange (CME), which US Securities and Exchange Commission (SEC) chairman Gary Gensler previously suggested is necessary for any ETF. related to cryptocurrencies to be approved.
In addition, we also know that the two largest ETF providers, ProShares and VanEck, have already submitted proposals for ethereum-backed ETFs to the SEC, although the regulator has subsequently asked both companies to withdraw their requests. However, other ETH-based ETF proposals are still pending with the SEC, including one from Kryptoin Investment Advisors.
As with bitcoin, an ethereum ETF is already listed in Canada, provided by CI Global Asset Management. In addition, several other exchange-traded investment vehicles that track the ETH price are also listed in several European countries.
“I will start the campaign now for the SEC to approve the Ethereum ETF. Might as well get ahead of the crowd because it's coming eventually,” crypto trader Scott Melker, aka The Wolf Of All Streets, said earlier this month.
And while speculation continues about a potential ethereum ETF, the new bitcoin ETF has already established itself as a serious challenge for the Grayscale Bitcoin Trust (GBTC), which until this week was the leading regulated bitcoin investment vehicle in the United States.
According to data from cryptographic analysts Glassnode, the Trust is currently trading at a discount of about 20% off the market value of the bitcoin it holds, suggesting that merchants are moving away from the once popular trading vehicle. investment.
The big discount was also touted today by Bloomberg senior commodities strategist and famous bitcoin bull Mike McGlone, though he suggested the Trust still remains a more attractive choice for “buy and hold types” than the ETF-based futures.
A roughly 20% discount for the Grayscale # Bitcoin Trust (GBTC) vs. a steep futures contango may represent two key forces: Help for Bitcoin's price and pressure on volatility. We see buy-and-hold types tilting toward GBTC and the more tactical focusing on futures-based ETFs. pic.twitter.com/JjmZzcwXGL
- Mike McGlone (@ mikemcglone11) October 20, 2021
However, as repeatedly mentioned by Barry Silbert, founder and CEO of Digital Currency Group, Grayscale's parent company, the Trust has already asked the SEC to convert its shares into ETFs. That message was also reiterated by Silbert on Twitter on Tuesday, where he emphasized that this is a spot-based rather than a futures ETF that the company is aiming for.
grayscale and @NYS to formally kicked off the process this morning to convert $ GBTC into the first spot-based bitcoin ETF
Upon conversion, the Grayscale Bitcoin Trust will trade under the ticker symbol $ BTChttps://t.co/hev2bWb4r0
- Barry Silbert (@BarrySilbert) October 19, 2021
Furthermore, as reported by Forbes last month, Grayscale may even be paving the way for ETFs based on other cryptocurrencies, including bitcoin cash (BCH), ethereum classic (ETC) and Litecoin (LTC).
However, the SEC's Gary Gensler gave no indication that he might be open to allowing cash ETFs “physically” for digital assets in the near future. But the crypto community still remains hopeful, and discussion continues on what the next big driver for the adoption of cryptography as an asset class will be.
