Expert Says Bitcoin ETFs Could Face Premiums Of Up To 8%: 'It Will Be Some Crazy Number'

If a Bitcoin exchange-traded fund (ETF) is approved, it could potentially trade at a premium of 8% compared to the actual value of the underlying assets, according to a recent statement by a prominent figure in the ETF industry.

What Happened: In an interview with Bloomberg TV on Monday, Reggie Browne, the head of ETF trading at GTS, suggested that the approval of a Bitcoin ETF could lead to a premium of up to 8% over the actual value of the assets. This is in contrast to the ProShares Bitcoin Strategy ETF, which, over the past year, has only seen an average premium of 0.02% due to holding Bitcoin futures.

Browne highlighted that the Securities and Exchange Commission’s reluctance to allow broker-dealers to trade spot Bitcoin could add complexity to trading the ETF, potentially leading to a significant premium over the net asset value (NAV).

"It will be some crazy number,” Browne expressed.

See Also: SEC Chair Gary Gensler Throws Shade Before Bitcoin ETF Sun, Crypto Community Roasts Him

His comments arrived just before the SEC’s Wednesday deadline to decide on the numerous spot Bitcoin ETF applications.

Why It Matters: The ETF market for Bitcoin, which has been a subject of significant contention, has also been a focus of the U.S. government. Recently, Max Keiser, a prominent Bitcoin maximalist, cast doubt that the U.S. government is considering the seizure of all Bitcoin ETFs.

On the other hand, the market for Bitcoin and other major cryptocurrencies saw a spike on Monday evening. This was attributed to the growing anticipation for the approval of a spot-based BTC ETF in the U.S. It is widely expected that the approval of these funds could significantly expand the investor base for the asset and attract substantial inflows.

Read Next: Bitcoin To The Moon: BitMEX Embarks On Historic Mission To Send Crypto To Lunar Surface

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