BlackRock, Fidelity, and other Bitcoin ETFs will hold spot BTC, according to Bloomberg ETF Analyst James Seyffart.
Bloomberg Intelligence ETF analyst James Seyffart has addressed concerns within the Bitcoin community about the authenticity of Spot Bitcoin Exchange-Traded Funds (ETFs) in the United States. Some in the community expressed skepticism about whether these ETFs would genuinely hold spot Bitcoin. Seyffart has assured investors that the current pool of spot Bitcoin ETFs will indeed hold real, spot BTC if approved.
This clarification comes in response to discussions and posts in the online Bitcoin community, where concerns were raised regarding whether the impending ETFs would maintain actual Bitcoin reserves. The Securities and Exchange Commission (SEC) reportedly instructed spot Bitcoin ETF filers to include clear language about cash creations and redemptions, with no mention of in-kind creations and redemptions. Some speculated that this could create a loophole allowing issuers to fractionally reserve the ETF.
Seyffart emphasized that spot Bitcoin ETFs will hold actual Bitcoin and refuted misconceptions, stating, “Say it with me: ‘Spot Bitcoin ETFs WILL hold Bitcoin.'”
The approval and launch of spot Bitcoin ETFs are highly anticipated within the financial space, seen as a potential game-changer for both institutional and retail investors. Investors are closely watching developments and eagerly awaiting the introduction of spot Bitcoin ETFs into the market.
