The U.S. Securities and Exchange Commission (SEC) recently held a hearing on the topic of spot vs. futures ETFs, and the decision-making process used by the SEC to determine which type of ETFs should be approved was revealed. Spot ETFs are funds that track the price of an underlying asset, while futures ETFs are funds that track the future price of an underlying asset.
At the hearing, the SEC discussed its decision-making process for approving spot vs. futures ETFs. The SEC stated that it considers a number of factors when deciding which type of ETF to approve, including the size and liquidity of the underlying asset, the potential for market manipulation, and the potential for investor protection. The SEC also noted that it takes into account the views of market participants when making its decisions.
The SEC also discussed Grayscale’s application for a spot vs. futures ETF. Grayscale is a digital asset management company that has been seeking approval for a spot vs. futures ETF since 2019. The SEC noted that it had taken into account Grayscale’s extensive research and analysis when considering its application.
The SEC’s decision-making process on spot vs. futures ETFs is an important development in the world of digital asset management. It provides clarity on the SEC’s approach to approving ETFs and provides guidance to companies seeking approval for their own ETFs. It also helps to ensure that investors are protected from potential market manipulation and other risks associated with investing in digital assets.
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