In a Dec. 19 podcast, Coinbase researchers warned there are at least two potential problems that could arise with the launch of spot Bitcoin ETFs.
The launch of spot Bitcoin exchange-traded funds (ETFs) in the United States could cause a shortage of “regulated” Bitcoin (BTC) and hurt one popular trading strategy, according to Coinbase researchers.
There are less than three weeks left until a potential approval of spot Bitcoin ETFs, with many believing trading could begin not long after. However, Coinbase’s head of institutional research, David Duong, and senior sales trader, Greg Sutton, said two key risks could appear once they begin trading.
In a Dec. 19 podcast, Duong and Sutton said the launch could cause an issue for institutions sourcing BTC, referring to issuers needing to buy enough Bitcoin to hold in their ETFs.
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Source: https://cointelegraph.com/news/bitcoin-spot-etf-launch-risks-coinbase-analysts