The leading crypto exchange, BitMEX has raised worries about how the SEC’s new regulations could impact ETFs, particularly the shift from in-kind redemptions to cash-based redemptions for authorized participants.
Prominent figures in traditional finance and the crypto world, including Scott Johnsson, a U.S. financial lawyer, and Nic Carter, a venture capitalist, along with BitMEX Exchange, are voicing concerns on Twitter about the SEC’s potential rules affecting crypto ETFs.
This anticipation has global investors expecting a significant increase in crypto investments post-approval. Many industry insiders believe that the SEC might greenlight a Bitcoin Spot ETF as soon as January.
Concerns have been raised by market experts like Scott Johnsson and Nic Carter regarding the upcoming Bitcoin Spot ETF. Scott Johnsson, a financial lawyer, highlighted that the SEC is hesitant to approve changes that would allow the direct exchange of digital assets.
He believes this could compromise investor safety, as the SEC’s current stance might result in a riskier product being introduced to the market.
Nic Carter, a venture capitalist, shared a similar sentiment explaining the SEC’s cautious stance implies that the efficiency of crypto ETFs might decrease because it would become more costly to create or redeem shares.
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