Part 7/15:
Addressing concerns about instruments like the Grayscale Bitcoin Trust, McClure explains that such structures often trade at significant premiums or discounts because they lack redemption mechanisms. This can lead to mispricing and arbitrage risks. ETFs, with their built-in redemption features and transparent structure, are generally superior in ensuring fair value.
The Pending Bitcoin ETF Approvals: What's Holding Them Up?
The conversation turns to the numerous Bitcoin ETF applications—around nine in the U.S. and several in Canada and Europe. Steve and Jeff analyze the delays:
- Regulatory Hesitation: The SEC's primary concern is market manipulation and liquidity. In 2017, initial rejections stemmed from fears that crypto markets were too immature and susceptible to manipulation.