There are two major disadvantages to spot bitcoin ETFs in the US

Everyone seems excited about the launch of spot bitcoin ETFs in the US, but… According to Coinbase researchers There are risks associated with this desirable investment product. This could result in a “regulated” Bitcoin shortage. ETF issuers need to buy their bitcoin from some regulated players, but if demand is high, they can't get enough bitcoin…?

Listen carefully my friends. #bitcoin is interesting pic.twitter.com/pbfo6vlX0C

— Bitwise (@BitwiseInvest) December 20, 2023

Good problem for bitcoins

Of course, this won't be a problem for current bitcoins. After all, the lack of “regulated” Bitcoin means prices will go through the roof…

The second risk, according to Coinbase's Sutton, is that something we call “fundamental trading” will end. It is a way of trading where investors benefit from the difference between the spot price of Bitcoin and the price of Bitcoin futures contracts.

Due to increased volume in both spot bitcoin and futures contracts, the potential profit on this trade has increased by 20 percent over the past two weeks. It turns out From Velo's data.

However, this percentage may decrease as institutional demand increases with Spot Bitcoin ETFs… and this trade may not be as profitable as it is now.

13 listings for Spot Bitcoin ETFs

At the time of writing, there are 13 listings for the Spot Bitcoin ETF in the US, and it looks like it will only be a matter of time before the market welcomes this homegrown investment product.

Most people expect approval from the US regulator before January 10, 2024.

Update: @grayscale With the SEC again yesterday regarding $GBTC pic.twitter.com/SIxdARrPyB

— James Seyff (@JSeyff) December 20, 2023

Applicants increasingly meet with the SEC to connect the proverbial dots and cross the t. This way, we can quickly see what the effect of this investment product will be on the Bitcoin price.

What do you think? Will We See a New All-Time High for Bitcoin in Early 2024?