All applications submitted to the U.S. Securities and Exchange Commission (SEC) for spot bitcoinexchange-traded-funds (ETFs) might receive simultaneous approval, according to Stuart Barton, the Chief Investment Officer of Volatility Shares.
Barton’s firm has already achieved a significant milestone in the crypto ETF space. In June, Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) was introduced as the first leveraged crypto ETF in the U.S. Furthermore, they were the pioneers in filing an application for an ether (ETH) futures-based ETF.
Although the SEC had not given the green light to any prior applicants, several companies followed in the footsteps of Volatility Shares to apply for an ether futures ETF. Many of these ETFs started trading in October. However, despite receiving SEC’s nod, Barton’s team did not roll out their ether ETF.
Barton shared his insights, stating, “We were the first to apply, but we didn’t benefit from the first-mover advantage when all applications were greenlit simultaneously. This could set a precedent that the SEC might follow when considering spot-bitcoin ETFs.” He also highlighted the lukewarm reception of ether ETFs, with less than $2 million traded on the debut day and continued low volumes throughout the week. This has led Barton to reconsider their product strategy. He expressed his surprise at the stark contrast between the ether ETFs’ reception and the overwhelming response to bitcoin’s launch, which saw a staggering billion dollars in just two days.
The anticipation surrounding spot-bitcoin ETFs has been escalating, especially among retail investors. That the approval of the spot-bitcoin ETF is already factored into its price to some extent. However, a false news report claiming the approval of BlackRock’s spot-bitcoin application caused a surge in bitcoin (BTC) prices, jumping from $27,900 to $30,000. This spike resulted in nearly $100 million in liquidations within an hour. Financial giant JPMorgan anticipates the approval of spot bitcoin ETFs to materialize in the coming months, likely before January 10, which is the final deadline for the Ark 21Shares application.
Bloomberg Intelligence analysts and ARK Investment Management’s Cathie Wood have echoed Barton’s sentiments, suggesting that all spot-bitcoin ETF applications might receive concurrent approval.
Barton’s unique perspective stems not only from his experience of not capitalizing on the first-mover advantage despite being the inaugural applicant for an ether ETF but also from his belief that the SEC successfully passed the public’s test by approving all ether ETFs simultaneously without facing any legal challenges. He opines that the SEC is poised to replicate this approach with spot-bitcoin ETFs.