Bernstein Research: Likelihood of U.S. SEC Approval of Spot Bitcoin ETFs Fairly High

The U.S. Securities and Exchange Commission's (SEC) stance on spot bitcoin (BTC) exchange-traded funds (ETFs) is difficult to uphold and the likelihood of approval is quite high, management platform Bernstein said in a research note Monday. The SEC has allowed futures-based bitcoin ETFs and recently approved a leveraged futures-based ETF (provided the futures pricing comes from a regulated exchange such as the CME). 

In addition, the lack of bitcoin spot ETFs has led to the growth of over-the-counter products such as the Grayscale Bitcoin Trust (GBTC), which are more expensive, less liquid and less efficient. The SEC would rather introduce regulated bitcoin ETFs dominated by more mainstream Wall Street participants and overseen by existing regulated exchanges than deal with grayscale OTC products that fill institutional gaps," the report said. "