Bitcoin ETF Awaits SEC Approval, But Concerns Linger Over Potential for Manipulation
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Investors eagerly await potential SEC approval of a Bitcoin spot ETF, but SEC concerned about potential for fraud and manipulation.
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ETF precedents allowed commodity ETFs based on relevance of futures markets, so Bitcoin futures market needs to lead price discovery.
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Even if futures lead, manipulation could still spread from spot market to ETF based on NAV calculation and creation/redemption method.
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Using futures prices for NAV calculation and cash creations/redemptions best shields ETF from spot market manipulation.
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With right details like above, a Bitcoin ETF could be great for investors while resisting manipulation.