The first upcoming formal launch of the Bitcoin Futures ETF By SEC has greatly inspired the crypto community.
DeFi Unchained Capital CEO, Parker Lewis however does not enjoy this inspiration and believes that a BTC Exchange Traded Fund (ETF) will be disadvantageous for investors.
During his podcast “Bitcoin, Supply Chains, Debt Ceilings, And More“ the former Deutsche Bank economist stated that when buying futures ETF, investors take on the extra risks than buying BTC on spot exchanges.
“The Exchange Traded Fund efficiently processes bitcoin as if it were a traditional financial asset. If an investor buys it through an ETF, then you assume additional market maker risks. As a result, he chooses one of the more risky ways of owning bitcoin than if he bought it on the exchange.”
Parker also said:
“A futures-based bitcoin exchange-traded fund could be an effective excuse for the SEC to avoid launching real bitcoin ETFs.”
Parker Lewis is generally not happy with the launch of the bitcoin futures ETF and noted that this could provoke a slight increase in the price of the BTC, and the reason may be a temporary increase in the interest of private and institutional investors in bitcoin. However, this does not change the bitcoin adoption curve and does not fundamentally affect the cryptocurrency market.
Pantera Capital CEO Dan Morehead does not consider ETFs to be an additional risk but worries that the launch of SEC Bitcoin Futures ETFs will bring the BTC price down, as it happened in 2017 when CME group first launched Bitcoin futures trading.
Recently SEC chairman has confirmed that he is not opposed to launching a narrow class of exchange-traded funds (ETFs) on Bitcoin that will invest in futures contracts rather than in cryptocurrency directly.