On-chain crypto analyst Willy Woo has suggested that a bitcoin futures exchange-traded-fund (ETF) in the United States may be bad for retail investors as it places institutional investors such as hedge funds at an advantage.
“If a bitcoin futures ETF is approved, in my opinion, it will be an expensive way to hold BTC,” said Woo, in an Oct. 8 thread on Twitter. “The exchange-traded-fund effectively outsources the holding of bitcoin to hedge funds through a chain of profit incentives,” he opined.
The U.S. Securities and Exchange Commission (SEC) is largely expected to approve a bitcoin ETF that invests in futures contracts later this month. Applications from Proshares, Invesco, Vaneck and Valkyrie are primed to get the go ahead, according to a Bloomberg report. The crypto market has long-awaited such an approval, believed to be behind bitcoin’s current bullish run.