According to analysts at Bernstein, the US Securities and Exchange Commission (SEC) will not be able to maintain its position on Bitcoin ETFs for long.
According to them, the regulator has already approved Bitcoin futures-based exchange traded funds, including those with Volatility Shares leverage.
Per the report, the lack of BTC-based spot ETFs leads to the growth of over-the-counter products (such as GBTC) that are "expensive, illiquid and inefficient."
Company analysts have said:
"SEC would rather bring in a regulated Bitcoin ETF led by more mainstream Wall Street participants and with surveillance from existing regulated exchanges, than having to deal with a Grayscale OTC product filling the institutional gap."
Invesco, VanEck, 21Shares, WisdomTree and Fidelity have previously submitted updated filings to the SEC to launch a Bitcoin spot ETF. This comes after the regulator called previous filings "not sufficiently clear or comprehensive."