First Bitcoin ETF reduces the odds of more draconian regulation – BBH
|Bitcoin and Ethereum are both trading near all-time highs as the trading in the first Bitcoin ETF kicked off on Tuesday. Economists at BBH believe that the US Securities and Exchange Commission (SEC) will finally a spot ETF in the future.
Bitcoin futures ETF marked an important milestone for the industry
“This will be an inefficient product in many ways, not only because of its nearly 1% expense ratio but because the typical contango of the Bitcoin futures curve will make the roll costly (though this could reverse during periods of backwardation).”
“BITO will provide retail investors with a convenient wrapper to gain crypto exposure and, perhaps more importantly, it greatly reduces the odds of more draconian regulation against the sector.”
“The natural progression would be for the SEC to approve a spot ETF at some point – though this is far from assured.”
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