After years of waiting for a US Bitcoin ETF, the crypto community could finally accept up to four products in the next few weeks. Bloomberg
This month the US Securities and Exchange Commission had to approve, reject or postpone a number of applications for Bitcoin Exchange Traded Funds (ETFs). This time around, everything follows a format that SEC chairman Gary Gensler has stated could be regulatory approved, meaning funds that hold bitcoin futures contracts instead of physical bitcoins and are subject to regulatory approval offer more investor protection.
All of this raises hopes for the $ 6.7 trillion US ETF market, and after years of delays, the world’s largest market could finally be ready to play. During that time, dozens of Bitcoin ETF products were launched in Canada and across Europe.
“We’re pretty bullish on approval here,” said James Seyffart, ETF analyst at Bloomberg Intelligence. We don’t believe that Gensler made positive comments on a Bitcoin futures ETF at the end of September and then negated them all a month later. “
In a move that has raised hopes among crypto advocates, the regulator asked two issuers to withdraw their Ethereum Futures ETF filings this summer, but did not make such a request for Bitcoin Futures ETF.
This week, the SEC also approved the Volt Crypto Industry Revolution and Tech ETF (BTCR). The managed product plans to invest the majority of its assets in companies “facing Bitcoin and its supporting infrastructure”. It is one of the smallest attempts to give investors indirect access to cryptocurrencies.
“Given that ETF issuers have relentlessly pursued Bitcoin ETFs for more than eight years, it seems somewhat unreasonable for the SEC to encourage multiple filings,” said Nate Geraci, president of advisory firm ETF Store. The approval of futures-based Bitcoin ETFs appears to be an easy way for the SEC and Chairman Gensler to win the emergence of future thinking in cryptocurrency. “
Unless the SEC differentiates between different filings and follows normal process, ProShares’ filing could be the first product approved by the regulator after it was first filed. Bitcoin Futures ETF Profile.
Valkyrie Investments, an emerging ETF issuer, also holds a good opportunity. Their filing is a week behind ProShares, but their proposed ETF will only hold Bitcoin futures. In contrast, the ProShares application contains provisions that allow its fund the ability to hold Bitcoin-related instruments.
At the beginning of the month, nine applications for Bitcoin futures were queued, although two were filed under the 1933 Act that allowed exchanges to list products. Another motion filed under the 1940 Act proposes organizing a combination of cryptocurrency papers and bitcoin futures.
Yesterday, crypto lender BlockFi filed an application based on Bitcoin futures that will also invest in short-term fixed income securities and other investments.
But not all are confident that approval is now within reach.
“The approval rating is 50% higher next month, but I wouldn’t be surprised if the SEC pushes it out a few more times like it did with a physical Bitcoin ETF,” said Dave Nadig, chief investment officer at data provider ETF Trends. “Of course you need a realistic management plan. We have not yet received any indication that a real name will come out. “
Bitcoin skyrocketed from $ 40,000 to $ 55,000 this month after news that the SEC could accept a Bitcoin ETF drew near, and if that really happens, the crypto community can be full in the final months of the year count on an upward trend.
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According to Bloomberg