Two US Congressmen sent letters to SEC Chairman Gary Gensler to approve a spot Bitcoin ETF.
Congressmen Tom Emmer and Darren Soto penned a letter to Gary Gensler to approve a spot Bitcoin ETF. The following statements were included in the letter:
“If you are comfortable allowing trading on a derivatives contract-based ETF, why not equip yourself in allowing trading on Spot Bitcoin-based ETFs? Bitcoin spot ETFs are based directly on the asset itself, which naturally provides more protection for investors.”
Emmer and Soto state that spot-based ETFs are more preferred, as they allow direct exposure to the asset, compared to derivatives-based futures ETFs.
While there was no shortage of applications for a spot Bitcoin ETF in the US, the SEC rejected or delayed all of them. For this reason, alternative spot BTC investment vehicles, which have accumulated over $ 40 billion in assets, have emerged. As a result, some of these quotes are currently trading on OTC markets at a different value than their net asset value (NAV). According to members of Congress, these products are traded at a much higher discount than their NAV value.
“Continuing to allow term-based ETFs while simultaneously rejecting spot-based ETFs will allow these discounts to continue and will clearly go against the SEC’s mission to protect investors.”
