In the world of cryptocurrency, there’s a growing buzz surrounding the approval of spot-bitcoin exchange-traded funds (ETFs). Stuart Barton, the Chief Investment Officer of Volatility Shares, a crypto ETF expert, believes that all applications submitted to the U.S. Securities and Exchange Commission (SEC) for spot bitcoin ETFs could be approved at the same time. Barton’s insights are based on his experience with crypto ETFs and a recent precedent set by the SEC.
Volatility Shares made headlines in June when they successfully launched the first leveraged crypto ETF in the United States, called the 2x Bitcoin Strategy ETF (BITX). Furthermore, they were pioneers in applying for an ether (ETH) futures-based ETF. While other applicants for ether futures-based ETFs followed suit and received SEC approval, Volatility Shares has yet to launch their ether ETF.
Stuart Barton explained, “We applied first but didn’t get the first mover advantage when all applications were approved in one go. This is a precedent-setting event that could be replicated by the SEC in its considerations of spot-bitcoin ETFs.”
Despite the ability to launch their ether ETF, Barton and his team are taking a cautious approach. The slow start of ether ETFs, with less than $2 million traded on the first day and lackluster volumes in the following weeks, has led them to reassess their product. Barton noted, “We could launch any day we wanted, but now we have the opportunity to figure out why these ether ETFs are so unpopular. It’s weird. Why are ether ETFs so much less popular than bitcoin’s launch of a billion dollars in two days? It is now possible for us to wait and make a very small change in our design and we will keep that perspective until we decide exactly what we want to do with it.”
The anticipation for spot-bitcoin ETFs has captured the attention of retail investors. Major players in the crypto space like Coinbase and JPMorgan have shared their predictions. JPMorgan believes that the approval of spot bitcoin ETFs could happen within months and possibly before January 10, which is the final deadline for the Ark 21Shares application.
Notably, experts like Bloomberg Intelligence analysts and Cathie Wood of ARK Investment Management agree with Stuart Barton’s viewpoint that all spot-bitcoin ETF applications might be approved simultaneously. Barton’s perspective is rooted not only in his experience but also in the notion that the SEC, by approving all ether ETFs in one go, has demonstrated its capacity to meet public expectations without facing legal challenges. This approach is expected to be mirrored with spot-bitcoin ETFs.
In total, there are 12 spot-bitcoin ETF applications from various companies, including Grayscale, 21Shares & Ark, BlackRock, Bitwise, VanEck, Wisdomtree, Invesco & Galaxy, Fidelity, Valkyrie, Global X, Hashdex, and Franklin. The crypto world eagerly awaits the SEC’s decision on these applications, and the potential for simultaneous approval could bring significant changes to the cryptocurrency market.
