Bernstein: U.S. Bitcoin spot ETF likely to be approved

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Brokerage firm Bernstein has published a report stating that the likelihood of a spot bitcoin ETF being approved by the U.S. Securities and Exchange Commission (SEC) is quite high.

However, according to analysts, the SEC may fear that there will be no spot bitcoin ETFReliable.

"Spot exchanges, such as Coinbase, are unregulated, and therefore spot prices are unreliable and susceptible to manipulation," writesGautam Chhugani, an analyst at the company, 

Bernstein states that the lack of a spot bitcoin ETF will lead to the rise of over-the-counter products such as the Grayscale Bitcoin Trust (GBTC), which are more expensive, illiquid, and inefficient. 

"The SEC is more likely to introduce a regulated bitcoin ETF led by larger Wall Street participantsand under the supervision of existing regulated exchanges than would deal with the OTC product," the report said.

Recall that last month, Blackrock filed an application to create a spot ETF for bitcoin.Similar applications were also submitted by Fidelity, Invesco, Wisdom Tree and Valkyrie.

Recently, the SEC called these applications "inadequate," after which Blackrock and several other companies updated their applications and resubmitted them to the agency.