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Hidden risks of approving Crypto ETF, investors should need to know


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 The SEC has decided to wait until mid-October to say if they will let people make new Bitcoin ETFs. This is a delay, and it's making some people upset.

 

The US Securities and Exchange Commission (SEC) has yet to approve a spot Bitcoin ETF, but the recent approval of a Bitcoin futures ETF has raised hopes that a spot ETF could be approved in the near future. A spot Bitcoin ETF would track the price of Bitcoin directly, while a futures ETF tracks the price of Bitcoin futures contracts. Futures contracts are agreements to buy or sell an asset at a predetermined price on a future date.

The SEC has been reluctant to approve a spot Bitcoin ETF because it is concerned about the potential for market manipulation and fraud in the Bitcoin market. However, the recent approval of a Bitcoin futures ETF suggests that the SEC is becoming more open to the idea of cryptocurrency ETFs. There are several spot Bitcoin ETF applications pending with the SEC. The SEC has a maximum of 240 days to approve or deny these applications. This means that the first spot Bitcoin ETF could be approved as early as January 10, 2024.

If a spot Bitcoin ETF is approved, it would be a major win for the cryptocurrency industry. It would provide investors with a regulated and convenient way to gain exposure to Bitcoin, and it could lead to increased demand and liquidity for the cryptocurrency.

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Edited by Cryptocrit
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