• The SEC has been questioned by US lawmakers on the reasons behind its reluctance to approve a Bitcoin spot ETF.
  • The two Congressmen highlighted that Bitcoin spot ETFs offer better investor protection than a futures-based product.
  • In addition, they added that investors should have a choice over which product is more suitable for them and their investment objectives.

United States Congressmen Tom Emmer (R-MN) and Darren Soto (D-FL) have questioned the Securities & Exchange Commission on why the agency is not comfortable with approving a spot Bitcoin exchange-traded fund (ETF).

Congressmen argue Bitcoin spot ETF offers better investor protection

The Congressmen advocated for approval for a Bitcoin spot ETF in a letter to SEC chair Gary Gensler on November 4. 

In the letter, the SEC was questioned on the reasons behind being comfortable with approving a Bitcoin futures-based ETF but not a BTC spot ETF. The first Bitcoin futures ETF by ProShares launched recently in October. 

According to Emmer and Soto, Bitcoin spot ETFs are based directly on the new asset class, which offers investors better protection than the futures-based product. They stated that unless there are clear and demonstrable investor protection advantages of the derivatives-based product, “investors should have a choice over which product is most suitable for them and their investment objectives.”

The two Congressmen concluded that since the SEC has the authority to approve Bitcoin futures ETFs, it should also be in a position to approve Bitcoin spot ETFs.

The SEC recently published a notice on November 2, seeking comments on Grayscale’s application to convert its Bitcoin Fund (GBTC) into a spot ETF.

The securities regulator has until December 24 to make a decision on Grayscale’s Bitcoin ETF, but the agency has a history of extending decisions on BTC spot ETF applications. 

Bitcoin price awaits next leg up toward $66,000

Bitcoin price has broken above the descending parallel channel pattern, ready to aim for its bullish target at $66,702. 

Slicing above the upper boundary of the prevailing chart pattern was crucial for the next Bitcoin price rally.

The next target for Bitcoin price is at the topside trend line of the upper parallel channel pattern at $66,702. For the bullish aim to be achieved, BTC must hold above critical levels of support.

BTCUSDT

BTC/USDT 4-hour chart

The first line of defense for Bitcoin price is at $62,147, where the 21 and 100 four-hour Simple Moving Averages (SMAs) meet. The following support for BTC is at the 50 four-hour SMA at $61,151, where the upper boundary of the parallel channel and the 78.6% Fibonacci retracement levels also coincide.

 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin price hears jingle bells rolling in

Bitcoin price hears jingle bells rolling in

BTC is popping higher this Tuesday morning in the ASIA PAC session as Chinese markets spurt higher. After the social unrest over the weekend and on Monday, markets are taking a turn as the Chinese government comes with more easing policy guidance and commits to speed up the vaccination rate. Markets are rallying as another supply chain glut is to be avoided, and inflation forces should decrease a bit further, triggering a rally in BTC that could continue into Christmas.

More Bitcoin news

Binance price shows promising support that could bring $400 onto quote board

Binance price shows promising support that could bring $400 onto quote board

Binance jumps over 3% as China sentiment flips into risk-on. Buyers blowing up the demand side with a bounce off a technical moving indicator.

More Binance news

Can XRP price kick-start 30% upswing if China removes zero-Covid restrictions?

Can XRP price kick-start 30% upswing if China removes zero-Covid restrictions?

XRP shows that it is taking its sweet time to overcome and sustain above a crucial resistance level. If successful, it could catalyze a quick run-up.

More Ripple news

Solana price set to gear up for Dominica coming online with cryptocurrency

Solana price set to gear up for Dominica coming online with cryptocurrency

Get set for the Commonwealth of Dominica to introduce a new coin. SOL should see a positive tailwind from the Tron network rolling out the Domnica Coin.

More Solana news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP