With The Arrival Of Spot Bitcoin ETFs Who Needs Funds Based On Futures?

Forbes Topline

Forbes

Business News, News, Entrepreneurship, Business

4.8 • 6 Ratings

🗓️ 29 February 2024

⏱️ 14 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

With the advent of the spot bitcoin ETFs, which have amassed $34 billion of assets (including more that $28 billion converted from closed end fund GBTC) the outlook for futures-based crypto funds is suddenly uncertain. Javier Paz, the director of data and analytics for Forbes, joins “Forbes Talks” to discuss the future of bitcoin futures. Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes: http://forbes.com Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Hi everyone I'm Rose Marie Miller here with Javier Paz, the director of data and
0:07.2	analytics here at Forbes here to talk about the future of Bitcoin futures.
0:12.2	Thank you so much for joining me today Javier. the future of Bitcoin futures.
0:12.6	Thank you so much for joining me today, Javier.
0:14.8	My pleasure was very glad to be with it.
0:17.8	Absolutely.
0:18.8	So, Javier, why did the SEC allow Bitcoin futures EDFs to begin trading years before Spot products were given the green light?
0:28.0	For the benefit of those out there who are not totally familiar with the nuances of EDFs. ETS are exchange-traded funds that hold,
0:37.6	they're a basket of, holds different types of securities, such as stocks, bonds, commodities.
0:46.1	So they wrap them into a bundle and they issue shares for those for that bundle and those
0:52.3	are the EDF shares.
0:53.9	Now they trade like stocks, these EDFs,
0:57.0	and in the case of Bitcoin EDFs,
0:59.5	there's two types of competing bundles, if will one of them is made up with financial
1:06.5	contracts called Bitcoin Futures these are contracts that don't quite are not Bitcoin per se but they track the price of
1:16.5	Bitcoin so institutions use them regularly for trading things like agricultural goods or oil or interest rates, they are financially constructed.
1:28.9	And then there is the actual Bitcoin, so the EDF buys a bunch of Bitcoin and then they wrap it into a
1:37.3	bundle and then they issue shares for that.
1:40.1	So there's two competing bundles, if you will.
1:43.6	And the SEC basically was not comfortable
1:46.8	with the actual Bitcoin bundle.
1:49.6	So they rejected something like 20-plus applications of EDF issuers when they approached the SEC
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Forbes, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Forbes and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.