US Lawmakers Call for Bitcoin Spot ETF in Letter to SEC Chair Gensler

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.

Share your thoughts