We could soon see the first Bitcoin (BTC) exchange-traded fund (ETF) getting approved by the U.S. Securities and Exchange Commission, Bloomberg reported on 15 October.
The publication cited “people familiar with the matter”, who said that the “regulator isn’t likely to block the products from starting to trade next week”. Bloomberg has also predicted that ProShares’ Bitcoin Strategy ETF is the one most likely to be approved, considering it is based on futures contracts, and was filed under mutual fund rules that the SEC Chairman has said provide “significant investor protections”. Eric Balchunas, senior ETF analyst at Bloomberg, said on Twitter:
After the news broke out Bitcoin’s price was quick to jump over $60,000 for the first time in several months, which is not surprising at all considering the first application for such a product was submitted by the Winklevoss twins back in 2013. Despite almost a decade of attempts, not a single BTC ETF has been approved by the U.S. SEC, which argued in the past that the crypto space is plagued with investor hazards.
We have seen a small change in the SEC’s stance on BTC ETFs recently, with SEC Chair Gary Gensler expressing his interest for funds based on CME-traded Bitcoin futures filed under the Investment Company Act of 1940. The SEC’s decision deadline is not only approaching for ProShare’s application, but also for three other ETF proposals based on futures contracts, namely Invecos, VanEck, and Valkyrie.