June 30 (Cointime) - The approval of a Bitcoin ETF based on spot prices would allow easier access for individual investors and mutual funds to actually buy BTC. However, the SEC has rejected all Bitcoin ETF applications due to concerns about transparency and surveillance-sharing agreements. Grayscale's Bitcoin Trust (GBTC) currently trades at a discount to its Bitcoin holdings, which is likely due to the lack of arbitrage tools.

While a spot Bitcoin ETF approval may seem positive, it could lead to selling pressure in the short term as BTC enters the market from Grayscale's GBTC conversion. The conversion could result in a significant amount of BTC being sold or invested in other Bitcoin-related instruments.