While the crypto industry yearns for a Bitcoin spot ETF, there seems to be a few people who really don’t understand what a positive action from SEC would mean for the markets in that front. This became apparent when one crypto entity on X sought to share their belief regarding the matter.
ETH Futures Vs Bitcoin Spot ETF
In an X post, the crypto fan opined that judging from the cold market reaction after the approval of ETH futures trading, it’s equally possible that a Bitcoin spot ETF approval by SEC would be received with the same reaction and that no significant movement would occur as a result.
However, what this supposed fan failed to grasp is the fact that spot ETF and futures ETF are entirely different market categories. Futures differ from spot in that they’re basically paper tokens as opposed to actual tokens involved in the spot market. Also, Bitcoin is more widely adopted and supported than ETH.
ETH Futures Has Nothing On BTC Spot ETF
An ETH spot ETF wouldn’t have nearly as much market impact as a Bitcoin spot ETF. The finite nature of the BTC supply also plays a role in the coin’s increasing value.
Simply put, this fan is completely off the rails for comparing ETH futures with BTC spot ETF. The Bitcoin market has attracted some of the heavies money bags in the world of late, among them BlackRock, Fidelity, and Grayscale investment funds and asset management firms.
Many of these entities have tabled applications for Bitcoin spot ETF that could potentially pave the way for the flow of billions and possibly trillions of dollars into the Bitcoin market.
The Dumbest Take
As expected, those who actually understand BTC spot ETF stepped in to render their lesson. Whale Panda, while reacting to the original post by the ETH futures lover, expressed disappointment with the take. Whale Panda went on to call the post the “dumbest take” of the day.
This incident marks one of the various situations where scantily-informed entities feign authority and mislead people with false assumptions. For starters, the possibility of the approval of a Bitcoin spot ETF has been touted as a most significant development that could take Bitcoin to the next level.
Besides, Ethereum and Bitcoin have different operating mechanisms for both their blockchain networks and the communities. Bitcoin is slated to undergo a network reward halving in early 2024, and analysts are already predicting huge price gains in that respect.
