U.S. congressmen Tom Emmer (R-Minn.) and Darren Soto (D-Fla.) advocated for the trading of bitcoin spot exchange-traded funds (ETFs) in a strongly worded letter to U.S. Securities and Exchange (SEC) head Gary Gensler on Wednesday.
- The letter questioned why the SEC is comfortable with allowing the trade of a derivatives-based bitcoin ETF but not a bitcoin spot ETF. It referred to the launch of the U.S.’s first bitcoin futures ETF, which started trading in October.
- Emmer and Soto wrote that a spot ETF, backed by physical bitcoin, offers investors more protection than one based on derivatives.
- “To be clear, we do not intend to say that one method of exposure is better than the other, but rather that unless there are clear and demonstrable investor protection advantages, investors should have a choice over which product is most suitable for them and their investment objectives,” the lawmakers wrote.
- Last week, Steven McClurg, CIO of Valkyrie Funds, which proposed its own bitcoin future ETF, said we probably won’t see a bitcoin spot ETF until 2022.
