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FUTURES OR ETFS? SPOT BITCOIN’S THRILLING BATTLE FOR DOMINANCE The investment landscape is witnessing a thrilling battle between Bitcoin futures and the emerging Spot Bitcoin Exchange-Traded Funds (ETFs). As the cryptocurrency market continues to evolve, the next few weeks are crucial in determining the future of Bitcoin-linked ETFs in the United States. The ProShares Bitcoin Strategy ETF (BITO), which tracks Bitcoin through futures, currently holds assets worth $1.4 billion. However, the upcoming decision by the Securities and Exchange Commission (SEC) on January 10 regarding the approval of Spot Bitcoin ETFs could significantly alter the playing field. The Evolving Landscape of Bitcoin Investments Bitcoin futures ETFs, such as BITO, have been the sole option for U.S. investors to incorporate Bitcoin ETFs into their portfolios. This scenario might change with the anticipated approval of Spot Bitcoin ETFs, which promise a more cost-effective way for investors to gain exposure to Bitcoin. Experts in the field, like Will Peck of WisdomTree, argue that futures ETFs might retain their utility for short-term trading but are likely to lose appeal among long-term investors and financial advisers with the introduction of Spot Bitcoin ETFs. This summer saw a surge in applications for Spot Bitcoin ETFs, spurred by BlackRock’s interest and a legal victory against the SEC in a Bitcoin ETF-related lawsuit. The SEC, however, continues to express reservations about Spot Bitcoin ETFs, citing concerns about the potential for price manipulation in the often illiquid token market. The collapse of major trading platform FTX and the legal troubles of its CEO, Sam Bankman-Fried, further highlight these concerns. Despite these challenges, insiders believe that the SEC is likely to approve Spot Bitcoin ETFs in early 2024. #ContentStar# #BountyCreator#
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