BlackRock’s application for a Bitcoin spot ETF is uncertain as the SEC favors another futures-based Ether ETF. Other institutions have filed for a spot Bitcoin ETF, but many had to withdraw or face rejection. The SEC’s concerns with spot ETFs include market manipulation and lack of regulatory infrastructure. The SEC prefers futures ETFs, which are based on regulated futures contracts. Not everyone agrees with the SEC’s assumptions about spot crypto ETF vulnerabilities. Some experts believe a spot BTC ETF is coming, and its approval is a matter of when, not if. U.S. regulators seem more likely to support futures ETFs. The approval of a futures ETF could boost the crypto market and signal regulators’ openness.
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