Originally posted by xraygoggles
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Futures and securities are regulated by entirely different regulators in the US. A futures fund getting approved confuses people thinking it makes btc spot more likely, which it doesnt necessarily given the vast difference in these things. People misunderstand because it says "bitcoin futures" it is somehow related to bitcoin or legitimizes it. Futures are its own thing, a new security, they dont have to trade in, replicate nor use the thing they are trading upon to exist. The most obvious and good analogy for btc is VIX futures. You cant trade the vix, you cant replicate it or use other instruments to synthetically approximate it easily, they are their own thing and traded as such. Also why btc/vix futures do not do a good job of tracking spot and have inherent carrying costs associated with how futures contracts works and settlement.
While I would guess unless some death blow comes (time may be past) coins will eventually be traded as securities (which means far fewer coins and less rando and sh!tcoins ofc which is a good thing) but also centralization, etc...and all these things that would make them nothing like their current day versions and wouldnt trade like that either, ie, no more unlimited trading, t+3 settlements, etc...many people have zero understanding what theyre asking for here.
Nothing wrong with that, but it isnt crypto anymore like you know it today, it will be an etf. It will be hard for them to exist simultaneously. Maybe thats how they kill it, by making it institutional.
The above article misstates SEC approving futures etf as btc, they are approving futures only. And uses a bunch of anecdata for their case and narratives which are totally off base. The regulatory apparatus is the only story here, and nothing else matters. Btc doesnt have to be useful, people dont have to take it up, it simply has to conform to the rules and have its stuff together like any other proper instrument. Lots of terrible products out there with no use, doesnt matter, structured properly.
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