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Differences between a BTC futures ETF and BTC ETF, why SEC favours the former?

I’m not a sophisticated investor, and would appreciate the answers, not sure if others have the same questions.

From what I’ve read:

* BTC futures ETF (which is posed to be approved as early as next week): tracks the price of BTC futures contracts
* BTC ETF (no news about approval yet): tracks the spot price of BTC

From SEC’s POV (source [FT article](https://www.ft.com/content/d7601039-e98e-47c8-97af-79f96c2c3d94), here’s the [link](https://archive.vn/rIa56) w/o paywall):

* Gary Gensler hinted that he is more comfortable with trading on regulated futures venues such as the Chicago Mercantile Exchange
* SEC is concerned about a potential lack of liquidity and the risk of price manipulation on spot exchanges
* SEC believes bitcoin futures are more appropriate for retail investors than trading in the underlying spot market

My questions:

* so appears SEC favours a BTC futures ETF, because the futures contracts are traded in a “regulated” exchange (CME), while Bitcoin is not?
* what are other reasons that SEC favours a BTC futures ETF at the moment?
* (might be a naively broad question) from investor’s POV, or the ETFs holding BTC futures, would trading BTC futures more risky, than trading BTC?

Thanks in advance.



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7 Comments

  1. With futures, banksters control the entire game, while with bitcoin they do not. In addition to the banksters not wanting bitcoin’s price to soar, they need plebs’ money to be stealable with the stroke of a pen, of their next smash-and-grab won’t work.

    For the same reason, anyone wanting to use Bitcoin as a hedge against the collapse of the overbalancing shell game that the SEC has created needs to own bitcoin itself, not some product of the banks.

  2. They know if they approved an asset-backed quality bitcoin etf, bitcoin would soar like hell bringing bitcoin to $200k-$400k in a matter of weeks.

    And as you can certainly imagine there are some reasons this is not wanted:

    1) Banksters haven’t yet accumulated enough

    2) Too many unknown whales outthere

    3) Way too many retail investors with way too much wealth in the end.

    *People! Don’t let yourself fool you. Keep stacking real bitcoin. And hodl.*

    The products getting approval now have nothing to do with actual bitcoins. In fact to me it’s quite obvious. Their sole purpose of being created and sold is keeping the crowd as far as possible away from the actual investment of millennium, Bitcoin itself. And while everybody institutional is busy overcoming the remaining hurdles and getting into this derivate shit for their average Joe customers, in the background the privileged quietly and secretly keep stacking actual Bitcoin for highly undervalued prices. Until their greed is satisfied (which will never be) and the future etf bubble of hope pops as well, revealing bitcoins true price in some years. Which will be a lot higher then they’ll in between pretend it to be.

    This is why I won’t stop calling them out. They won’t get away with this. They won’t fool millions of people out of real bitcoin into some cowshitvalued investment piece of crap. Remember my words. Fiat money’s time is running out. And all of these fraudy banksters will fuckin go down with it. Remember my words.

    *People don’t be stupid! Keep stacking real bitcoins. And hodl. Sure, they’ll fight us…but in the end we’ll win*

  3. > SEC is concerned about a potential lack of liquidity and the risk of price manipulation on spot exchanges

    The disgustingly offensive disingenuousness, is that cash settlement is based on 4pm spot price, which just needs to be manipulated for 1 second to “score” on the futures contract.

    The pattern most of this year has been price drops just before monthly futures expiry.

What do you think?

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