US lawmakers urge SEC chair to approve Bitcoin spot ETF

• The SEC has been questioned by US lawmakers on the reasons behind its reluctance to approve a Bitcoin spot ETF.
• The two Congressmen highlighted that Bitcoin spot ETFs offer better investor protection than a futures-based product.
• In addition, they added that investors should have a choice over which product is more suitable for them and their investment objectives.

United States Congressmen Tom Emmer (R-MN) and Darren Soto (D-FL) have questioned the Securities & Exchange Commission on why the agency is not comfortable with approving a spot Bitcoin exchange-traded fund (ETF).

Congressmen argue Bitcoin spot ETF offers better investor protection

The Congressmen advocated for approval for a Bitcoin spot ETF in a letter to SEC chair Gary Gensler on November 4. 

In the letter, the SEC was questioned on the reasons behind being comfortable with approving a Bitcoin futures-based ETF but not a BTC spot ETF. The first Bitcoin futures ETF by ProShares launched recently in October. 

According to Emmer and Soto, Bitcoin spot ETFs are based directly on the new asset class, which offers investors better protection than the futures-based product. They stated that unless there are clear and demonstrable investor protection advantages of the derivatives-based product, “investors should have a choice over which product is most suitable for them and their investment objectives.”

The two Congressmen concluded that since the SEC has the authority to approve Bitcoin futures ETFs, it should also be in a position to approve Bitcoin spot ETFs.

The SEC recently published a notice on November 2, seeking comments on Grayscale’s application to convert its Bitcoin Fund (GBTC) into a spot ETF.

The securities regulator has until December 24 to make a decision on Grayscale’s Bitcoin ETF, but the agency has a history of extending decisions on BTC spot ETF applications. 

Bitcoin price awaits next leg up toward $66,000

Bitcoin price has broken above the descending parallel channel pattern, ready to aim for its bullish target at $66,702. 

Slicing above the upper boundary of the prevailing chart pattern was crucial for the next Bitcoin price rally.

The next target for Bitcoin price is at the topside trend line of the upper parallel channel pattern at $66,702. For the bullish aim to be achieved, BTC must hold above critical levels of support.

BTC/USDT 4-hour chart

The first line of defense for Bitcoin price is at $62,147, where the 21 and 100 four-hour Simple Moving Averages (SMAs) meet. The following support for BTC is at the 50 four-hour SMA at $61,151, where the upper boundary of the parallel channel and the 78.6% Fibonacci retracement levels also coincide.

 

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