US Lawmakers Call for Bitcoin Spot ETF in Letter to SEC Chair Gensler

Congressmen Tom Emmer and Darren Soto questioned why the SEC is uncomfortable with a spot bitcoin ETF when it already allows the trading of bitcoin futures ETFs.

By Sandali Handagama

Nov 3, 2021 at 7:14 p.m. UTC

Updated Nov 3, 2021 at 8:18 p.m. UTC

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Sandali Handagama

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

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U.S. Reps. Tom Emmer (R-Minn.) and Darren Soto (D-Fla.) advocated for the trading of bitcoin spot exchange-traded funds (ETFs) in a strongly worded letter to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler on Wednesday.

The letter questioned why the SEC is comfortable with allowing a derivatives-based bitcoin ETF but not a bitcoin spot ETF. It referred to the launch of the first bitcoin futures ETF in U.S., which started trading in October.
Emmer and Soto wrote that bitcoin spot ETFs are based directly on the asset and offer investors more protection than one based on derivatives.
“To be clear, we do not intend to say that one method of exposure is better than the other, but rather that unless there are clear and demonstrable investor protection advantages, investors should have a choice over which product is most suitable for them and their investment objectives,” the lawmakers wrote.
Last week, Steven McClurg, chief investment officer of Valkyrie Funds, which proposed its own bitcoin futures ETF, said the market probably won’t see a bitcoin spot ETF until 2022.

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