At a time when many investors are not spared enthusiasm for the launch of a BTC futures ETF, Mark Cuban does not share such euphoria. The billionaire said he would much rather buy and hold the asset than invest in a futures-based product.
BTC futures ETF are uninteresting for Mark Cuban
Mark Cuban has been one of the most prominent BTC (BTC) enthusiasts in recent years and seeks every opportunity to praise the assets of this asset. But despite all the love he has for BTC, he doesn’t have the same affection for the just-launched BTC ETF product.
Cuban expressed his opinion in an interview with ‘CNBC Make It’, where he was asked if he was going to invest in a BTC ETF launch after the launch. The answer was clear:
“No, I can buy BTC directly”
Mark Cuban has stated several times in the past that BTC is “a better alternative to gold, and it will continue.” He added that his belief in the value of this cryptocurrency is the reason why he owns this asset and would never sell it.
His belief in BTC is also reflected in the composition of his portfolio. BTC makes up a full 60%, ETH makes up 30% and the remaining 10% is intended for other projects that he finds attractive.
The reason for his distrust of the ETF on BTC futures is the fact that he monitors futures contracts and may not reflect the actual price of BTC. Despite this disadvantage, however, it still offers investors the possibility of exposure to cryptocurrencies without having to own the asset and have to deal with the problems of its safe-keeping.
Cuban: The Road to BTC ETFs
The approval of the BTC ETF (although so far only futures and we will have to wait some time for the spot) was a long and winding road, which was lined with a number of rejections by the SEC.
SEC commissioners had met to discuss a new application under the Investment Companies Act 1940 (meeting all regulatory requirements) and to gave this request a real green light. The historically first approved application was the application of ProShares, whose additionally modified project was definitively launched on 19 October.
Why is Cuban’s position so interesting for investors? It should be noted that the reluctance of some investors to invest in ETFs on BTC futures may lead to a wave of requests to launch spot ETFs. For example, Grayscale is ready to apply for the conversion of its Grayscale BTC Trust into a spot ETF for BTC.