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

[Cryptocrit]

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.

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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.

https://www.cryptocrit.xyz/2023/10/hidden-risks-of-approving-crypto-etf.html

[danherbias07]

SEC knows that approving a Bitcoin futures would not affect the market much and there are fewer supporters of it. While in Bitcoin Spot ETF there will be a big difference. That is also the reason why they are also open to the approval of Ethereum futures because they know that fact said above.
I don't think this is about the security of the investors anymore, in my opinion's an attack on Bitcoin to keep it in control because once they approve the Bitcoin Spot ETF, something big could happen. Just imagine it being traded on the same platform as gold, stocks, and bonds. That will certainly make a lot of difference for the Bitcoin market and SEC doesn't want that to happen, yet.

[o48o]

SEC knows that approving a Bitcoin futures would not affect the market much and there are fewer supporters of it. While in Bitcoin Spot ETF there will be a big difference. That is also the reason why they are also open to the approval of Ethereum futures because they know that fact said above.
I don't think this is about the security of the investors anymore, in my opinion's an attack on Bitcoin to keep it in control because once they approve the Bitcoin Spot ETF, something big could happen. Just imagine it being traded on the same platform as gold, stocks, and bonds. That will certainly make a lot of difference for the Bitcoin market and SEC doesn't want that to happen, yet.

Cancellation shouldn't be a surprise really, as they have been cancelling that since 2013. And i frankly don't think that issue about security of the investors would be all about market manipulation. As Bitcoin is new kind of asset that requires new kinds of safety measures for holders. Ironically, the very essence what makes bitcoin valuable, also makes it a dangerous asset to hold for anyone not tech savvy enough. Laws on insurance and customer safety lacks behind whenever we get new disruptive technology. I mean laws on the internet itself are still pretty rough and developing.

[jossiel]

That's just a probable delaying tactic because there's a chance that the Bitcoin ETF filed by BlacRock is likely to get approved.

There have been even headlines says that they're the owner of this world. LOL. I know that it's just a catchphrase but we know when these big financial institution applies or provides something for their own gain.

It's very likely and high chance that they will get it.

[dimonstration]

-snip-

Where exactly the hidden risk on this shared post? All SEC mention are known risk which SEC using for long time when they are keep denying ETF including the futures ETF that is now approved.

Volatility or not, all type of trades has risk involved and they can simply tagged this as high risk and only offer to those client that accepts the high risk investment. Financial services usually conduct a risk assessment before they can offer any investment.

[el kaka22]

This is fine, they weren't accepting anything anyway, so having something like this is not really a shocker to be fair and should not be a big deal at all. I think that it is going to be a fine detail in the end when you think about it and people may not approach it that differently but they should definitely consider that as a reality without a doubt. I know for a fact that it will not take that long for it to happen but that is also not something that we need neither.

When they postpone something I already do not care about to begin with, it doesn't become a big deal and should not be feeling like I lost something. If it was something much bigger, something that I cared about as well and felt deeply, then I would be pissed off. I understand that some people are very much expecting ETF as well, so it is totally understandable that they may not feel all that enjoyed regarding this situation but that is not really something I can meddle with, it is not my point of view.

[cryptoaddictchie]

Delaying tactics mean that their load isnt full yet the approval of bitcoin etf will mark a big pumping reason to bitcoin and they dont want it to happened without having a lot of bags yet. Maybe they can see some hindrances but for rich this is the reason why make some other complicated reason just to delay it.

[goaldigger]

Delaying tactics mean that their load isnt full yet the approval of bitcoin etf will mark a big pumping reason to bitcoin and they dont want it to happened without having a lot of bags yet. Maybe they can see some hindrances but for rich this is the reason why make some other complicated reason just to delay it.

They are playing here for their own benefit and they can’t let the market pump not until they are ready.
Well, what you can expect from a government agency? We all know that they are against crypto and yet most of them have this already. Let’s just wait and make sure that you are ready for it because that could be the signal of a big pump and for sure, it will trigger the green candles.

[cryptoaddictchie]

They are playing here for their own benefit and they can’t let the market pump not until they are ready.
Well, what you can expect from a government agency? We all know that they are against crypto and yet most of them have this already.

Unfortunately everyone thinks that way on how and why this is happening. What reason could be there right? If its already been set and reviewed then theres no choice but to approved but unforseen alibi has been seen and most likely due to the other factors like the bitcoin halving. Surely these people are looking into the historical data of such event like that and wanted to ride with it.

[Xal0lex]

It is unlikely that the approval of a spot ETF will happen before bitcoin halving. The market is not ready for ETFs yet in that there is not much liquidity in the crypto market. Think back to the time when futures ETFs were added, it was the peak of the bull market when there was a lot of liquidity and investors in the market. Now the world is in an extremely unstable economic environment, the crypto market continues to move sideways with some notes of a bear market. Therefore, I believe that spot ETFs will be approved only when the real bull run starts.