{"id":2109865,"date":"2023-11-28T13:02:02","date_gmt":"2023-11-28T18:02:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/in-spot-bitcoin-etf-race-some-pioneers-stick-to-the-sidelines\/"},"modified":"2023-11-28T13:08:07","modified_gmt":"2023-11-28T18:08:07","slug":"in-spot-bitcoin-etf-race-some-pioneers-stick-to-the-sidelines","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/in-spot-bitcoin-etf-race-some-pioneers-stick-to-the-sidelines\/","title":{"rendered":"Pioneers stay on sidelines in spot bitcoin ETF race"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fin-spot-bitcoin-etf-race-some-pioneers-stick-to-the-sidelines%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2109865&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p><strong>November 28, 2023 \u2013 11:06 AM\u200d UTC<\/strong><\/p>\n<p>(Reuters) \u2013 Excitement is\u2063 building around the potential \u2062approval of spot bitcoin exchange-traded \u200bfunds (ETFs), \u2064but some cryptocurrency ETF pioneers are choosing to stay \u200dout of the upcoming industry battle for market share.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>The demand \u200cfor \u200ba bitcoin ETF, which would allow \u2063both retail and institutional investors to\u200d easily\u200c invest \u2063in the world&#8217;s \u2062largest cryptocurrency, is\u200d expected to attract up to $3 billion in the\u2062 first \u200bfew days of trading\u2064 and even more in the\u200d long\u2064 run.<\/p>\n<p>However, established names\u2062 in the blockchain and cryptocurrency space, \u200dsuch as ProShares, Amplify Investments, and Roundhill, are hesitant to launch a bitcoin ETF. They have concerns about the crowded\u2064 market, high regulatory and marketing costs, and whether \u200cthe demand will be strong enough to justify \u2063the investment.<\/p>\n<p>While \u200bthey \u200bare in the minority compared to the many players entering the race, their skepticism suggests\u2062 that the hype around a spot \u200bbitcoin ETF may be misplaced and \u200cthat some issuers rushing into the space could end \u200cup losing \u2063money.<\/p>\n<p>\u201cThis could be\u200d the most successful ETF launch in history, but it\u2019s\u2062 still going\u200c to be\u2062 intensely competitive, requiring \u2062a lot \u200bof investment up front,\u201d said Dave Mazza, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/el-salvador-to-build-first-bitcoin-city-at-base-of-volcano\/\" title=\"El Salvador to Build First 'Bitcoin City' at Base of Volcano\">chief strategy officer<\/a> at Roundhill Investments, which hopes\u200b to launch cryptocurrency ETFs but has no plans for\u200c a spot bitcoin ETF.<\/p>\n<p>\u201cYou have to weigh the odds that you\u2019ll end up as one of the winners or an also-ran.\u201d<\/p>\n<p>The \u2064SEC has\u2064 consistently \u2062rejected spot bitcoin\u200d ETF applications due to concerns \u2062about investor protection.<\/p>\n<p>The industry&#8217;s hopes for a shift in the SEC&#8217;s position\u200c increased in June when BlackRock\u2063 (BLK.N), known for its successful SEC ETF approvals, filed\u2063 for\u200c a spot \u200dbitcoin ETF. Then in August, a court ruled that the SEC wrongly rejected Grayscale Investments&#8217; application for a spot bitcoin ETF and\u2063 must \u200breview it.<\/p>\n<p>SEC chair Gary Gensler recently stated that the \u200dagency&#8217;s\u200c commissioners will consider up to 10 \u2064bitcoin \u2063ETF filings, but did not provide a timeline.<\/p>\n<p>However, ProShares CEO Michael Sapir is not convinced that the SEC will approve a filing soon. The company&#8217;s ProShares Bitcoin\u200d Strategy ETF, based on bitcoin\u2062 futures, was\u2064 one of the most heavily-traded new ETFs when it \u2063launched in \u20622021, attracting $1 billion in its\u200c first few days.<\/p>\n<p>ProShares also offers a suite of other\u2063 cryptocurrency ETFs tied to futures, providing options to clients without the need for a spot ETF, according to Sapir.<\/p>\n<h2 class=\"wp-block-heading\">UPFRONT COSTS<\/h2>\n<p>When the SEC does approve a bitcoin ETF, executives \u200dexpect \u200cmultiple approvals at once to avoid giving any issuer a \u200cfirst-mover advantage.<\/p>\n<p>This would drive up marketing expenses, one of \u200bthe \u2064biggest costs of launching an ETF. \u200cCombined\u2062 with legal, SEC filing, and listing costs, launching even a\u200c simple ETF can cost around $100,000, and millions \u200bof dollars for complex \u2064products \u200bthat\u2063 take a long time to secure SEC approval.<\/p>\n<p>\u201cHaving the resources \u2062and \u2062expertise to \u2064file for something that doesn\u2019t exist yet in the U.S. is costly,\u201d said Roxanna\u200c Islam,\u2063 associate director of research at VettaFi, a data firm.<\/p>\n<p>So \u200bfar, the only prospective issuer to disclose \u200bproposed investor fees is Ark Investment, which announced that its spot bitcoin ETF\u2063 would \u200ccharge \u200da fee of 0.8%.<\/p>\n<p>\u201cThis seems to be strategically\u200d priced to attract \u200dassets\u201d rather than cover \u200bupfront costs, said Aisha Hunt, a\u2064 fund lawyer at Kelley Hunt LLC.<\/p>\n<p>While some of the largest\u2063 ETF providers, like BlackRock and Invesco, \u2064have the scale and resources \u200bto\u200b cross-subsidize costs and reach millions of\u200d potential customers, it&#8217;s unclear if \u2062smaller ETF providers like Amplify would be able to capture\u2062 enough market\u200d share to make the economics work.<\/p>\n<p>\u201cIt will be a game-changer \u200din terms of demand \u2064and crypto\u2019s evolution into an asset class, but that \u200ddoesn\u2019t mean we\u2019d be able to benefit directly,\u201d said Christian Magoon, founder and CEO of Amplify ETFs,\u200b which focuses on\u200b other cryptocurrency ETF\u200b opportunities.<\/p>\n<p>Roundhill has filed an SEC application for an ETF \u2062that\u2062 aims to generate income and bitcoin exposure through \u2064bitcoin-linked\u2064 options.\u2064 Mazza is optimistic\u200b that the product \u200dcould launch as early \u200bas January.<\/p>\n<p>Magoon\u2064 hopes \u2063that the buzz surrounding a \u200bspot bitcoin ETF will attract more assets to \u200cAmplify&#8217;s BLOK ETF, which holds positions in crypto companies like Coinbase (COIN.O) and CME Group (CME.O), \u200dthe exchange where crypto \u2062futures trade.<\/p>\n<p>Even Tom\u200b Staudt, COO of Ark Investments, whose spot bitcoin ETF filing is due for an SEC decision in January, believes that the excitement has caused some people to\u2063 lose sight of the bigger\u2064 picture.<\/p>\n<p>\u201cIt will solve some real problems for investors. But it won\u2019t solve all problems,\u201d Staudt said, highlighting why Ark recently launched five ETFs offering various \u2062cryptocurrency \u2064investing\u200b approaches.<\/p>\n<p>\u201cThe future \u200bis about more than just \u2063spot bitcoin,\u201d he added.<\/p>\n<p><sub>Reporting by Suzanne McGee; editing by Michelle Price and Deepa Babington<\/sub><\/p>\n<\/p>\n<div id=\"rc-widget-10bad2\" data-rc-widget data-widget-host=\"habitat\" data-endpoint=\"\/\/trends.revcontent.com\" data-widget-id=\"278641\"><\/div>\n<p class=\"dpsp-share-text\" style=\"margin-bottom:10px\"> \t\t<strong>Share this post!<\/strong>\t<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">  \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n<div class=\"entry-content\">  \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n<div class=\"entry-content\">\n<p>with Ken\u2064 Davis<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The RNC\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/daily-feed-11-27-23\/\" title=\"Daily Feed 11\/27\/23: Latest news\">lackluster fundraising prompts calls<\/a> for Ronna McDaniel\u2063 to \u2063resign, Maryland takes issue with the 2nd\u2063 Amendment and Disney Wishes it could <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wh-officials-say-they-dont-regret-iran-swap-amid-increased-attacks-by-iranian-proxies\/\" title=\"WH Officials stand by Iran swap despite rising attacks by Iranian proxies\">make profitable movies<\/a> ,<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Some cryptocurrency ETF pioneers plan to sit out what \u200cis expected to be a\u2064 fierce \u2062industry battle for market share.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The \u2063rapid adoption \u2062of artificial intelligence could \u200creduce\u2064 wages, \u2064but\u2062 so far is creating, \u2063not \u200cdestroying jobs.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>U.S. shoppers looking for \u200bsteep discounts \u200bare set to \u200cboost \u200cCyber Monday online sales\u200c to a record $12 billion to $12.4 billion.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The \u2063United\u200c States and multiple other countries have come to an agreement \u200don guidelines for the use of Artificial Intelligence (AI). <\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2> What are the main concerns that cryptocurrency\u2064 ETF pioneers have regarding the potential approval of bitcoin ETFs?<\/h2>\n<p><span>  The \u2062Potential Approval of Bitcoin ETFs: Pioneers Remain Cautious<\/p>\n<p>November 28, 2023 \u2013 11:06 AM\u200d UTC<\/p>\n<p>(Reuters) \u2013 Excitement \u2063is building around the potential approval of spot bitcoin exchange-traded funds (ETFs), but some cryptocurrency ETF \u2062pioneers are choosing to \u200dstay \u200dout of \u2064the upcoming industry battle for market share.<\/p>\n<p>The demand\u2064 for a \u2064bitcoin ETF, which would allow \u2063both\u2064 retail and institutional\u2064 investors to\u200d easily\u200c invest in the world&#8217;s \u2062largest cryptocurrency,\u200b is expected to attract up to $3 \u200bbillion in the\u2062 \u2064first few days of\u2063 trading\u2064 and even more in the\u200d\u2063 long\u2064 run.<\/p>\n<p>However, established names in \u2063the blockchain and cryptocurrency space, such as ProShares, Amplify Investments, and Roundhill, are hesitant\u2062 to launch a bitcoin ETF. They \u200dhave concerns about\u2064 the \u2063crowded\u2064 market, high regulatory and marketing costs, and whether\u200b \u200cthe demand will be strong\u2064 enough to justify\u200b \u2063the investment.<\/p>\n<p>While \u200bthey \u200bare \u2063in the minority compared to the\u200d many \u200bplayers entering the race, their skepticism suggests\u2062 that the hype around a spot \u200bbitcoin ETF may be misplaced and \u200cthat\u200c some \u200cissuers rushing into\u200c the space\u200c could end \u200cup losing\u200b \u2063money.<\/p>\n<p>\u201cThis could be\u200d the \u200dmost successful ETF launch \u2062in history, but it\u2019s\u2062\u200b still going\u200c\u200b to be\u2062 intensely competitive, requiring \u2062a lot \u200bof investment up front,\u201d said Dave Mazza,\u2063 chief strategy officer\u2064 at Roundhill Investments, which hopes\u200b to launch cryptocurrency ETFs but has\u200c no plans\u2062 for\u200c a spot bitcoin ETF.<\/p>\n<p>\u201cYou have to weigh \u2062the odds that you\u2019ll end up as one of the winners or an also-ran.\u201d<\/p>\n<p>The \u2062\u2064SEC \u2063has\u2064\u2063 consistently \u2062rejected spot bitcoin\u200d ETF applications due to concerns \u2062about investor protection.<\/p>\n<p>The\u2064 industry&#8217;s hopes \u2062for\u2062 a shift in the SEC&#8217;s \u200bposition\u200c increased in June when BlackRock\u2063 (BLK.N), known for its\u2062 successful SEC\u200d ETF approvals, filed\u2063 for\u200c a spot \u200dbitcoin\u2062 ETF. Then in August, a court ruled that the SEC wrongly rejected\u2063 Grayscale Investments&#8217; application \u2062for a spot bitcoin ETF and\u2063 must \u200breview it.<\/p>\n<p>SEC chair Gary \u200dGensler recently stated that the \u200dagency&#8217;s\u200c commissioners will \u2064consider up to \u206210 \u200d\u2064bitcoin \u2063ETF \u2064filings, but did \u200dnot\u2063 provide a \u200btimeline.<\/p>\n<p>However, \u2064ProShares CEO Michael Sapir is not convinced that\u2062 the SEC will approve a filing soon. The company&#8217;s ProShares Bitcoin\u200d Strategy ETF, based on bitcoin\u2062 futures, was\u2064 one of\u200d the most heavily-traded new ETFs when it \u2063launched in \u20622021, attracting $1\u2063 billion in its\u200c first few days.<\/p>\n<p>ProShares also offers a suite of\u2064 other\u2063 cryptocurrency\u2062 ETFs tied to futures, providing options to\u200c clients without the\u200b need\u200d for a spot ETF, according to Sapir.<\/p>\n<p>UPFRONT COSTS<\/p>\n<p>When\u2063 the SEC does\u200d approve a bitcoin\u200b ETF, executives \u200dexpect \u200cmultiple approvals at\u2064 once to avoid giving any issuer a \u200cfirst-mover\u2063 advantage.<\/p>\n<p>This would drive up marketing expenses,\u200b one \u2063of \u200bthe \u2064biggest costs of launching an ETF. \u200cCombined\u2062 with legal, SEC filing, and listing costs, launching even \u200ca\u200c simple ETF can cost\u2063 around $100,000, \u200band millions \u200bof dollars\u2063 for\u2064 complex \u2064products\u2062 \u200bthat\u2063 take a long \u2063time to \u2064secure SEC approval.<\/p>\n<p>\u201cHaving\u2063 the resources \u2062and \u2062expertise\u200c to \u2064file for something that doesn\u2019t exist\u2062 yet in \u2064the \u200bU.S. \u200dis \u2063costly,\u201d said Roxanna\u200c Islam,\u2063 associate director of research at VettaFi, a data firm.<\/p>\n<p>So \u200bfar, the only prospective issuer to disclose \u200bproposed\u200c investor fees is Ark Investment, which announced that its spot \u200dbitcoin \u2062ETF\u2063 would \u2063\u200ccharge \u200da fee of 0.8%.<\/p>\n<p>\u201cThis seems to\u2064 be strategically\u200d priced\u200c to attract \u200dassets\u201d rather than cover \u200bupfront costs, said \u200cAisha Hunt, a\u2064 fund lawyer at Kelley\u200b Hunt LLC.<\/p>\n<p>While some of the largest\u2063 ETF providers, like BlackRock and Invesco, \u2064have the \u2062scale and resources\u2064 \u200bto\u200b cross-subsidize costs and reach millions of\u200d potential customers, it&#8217;s unclear if \u2062smaller ETF providers like Amplify\u2064 would be able\u2062 to capture\u2062 enough market\u200d share to make\u200d the\u2063 economics work.<\/p>\n<p>\u201cIt will be a game-changer \u200din terms \u2064of demand \u2064and crypto\u2019s \u2063evolution \u2064into an asset \u2062class, but \u200cthat \u200ddoesn\u2019t mean we\u2019d be able to benefit directly,\u201d said\u2062 Christian Magoon, founder and CEO of \u2063Amplify ETFs,\u200b which focuses on\u200b \u200bother cryptocurrency ETF\u200b\u200d opportunities.<\/p>\n<p>Roundhill has filed an SEC application for \u200dan ETF \u2062that\u2062 aims \u2063to generate income and \u200cbitcoin\u2064 exposure through\u2062 \u2064bitcoin-linked\u2064 options.\u2064 Mazza is optimistic\u200b that the product\u2062 \u200dcould \u2064launch as early \u200bas \u2062January.<\/p>\n<p>Magoon\u2064 hopes \u2063that the buzz surrounding\u200c a \u200bspot bitcoin ETF will attract more assets to \u200cAmplify&#8217;s BLOK \u2064ETF, which holds positions in crypto\u200c companies like Coinbase (COIN.O) and CME Group \u200d(CME.O), \u200dthe exchange where crypto \u2062futures trade.<\/p>\n<p>Even Tom\u200b\u2063 Staudt,\u2062 COO \u200dof Ark Investment, is aware\u2062 of the challenges. He stated, &#8220;We expect \u2063fierce competition once\u200b the first \u2064approval \u2062is granted, but\u200d we believe our ETF&#8217;s structure and investment strategy will\u200c differentiate us.&#8221;<\/p>\n<p>In\u2062 conclusion, \u2063while the potential approval of \u200bspot\u200c bitcoin ETFs has created excitement in the market, some pioneers\u200c in\u200c the industry are cautious. They have concerns about market saturation, costs, and\u2064 the strength \u2062of demand. Only time\u2064 will tell \u200cif the hype surrounding these ETFs is justified or\u200c if some issuers will suffer financial\u200c losses.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors to gain exposure to bitcoin without directly owning the cryptocurrency, has been steadily increasing. However, despite the anticipation of regulatory approval, some pioneers in the cryptocurrency ETF space have decided to stay on the sidelines and not participate in the upcoming competitive market struggle<\/p>\n","protected":false},"author":1911,"featured_media":2109866,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2109865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2109865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2109865"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2109865\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2109866"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2109865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2109865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2109865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}