Join Our Telegram channel to stay up to date on breaking news coverage
The US Securities and Exchange Commission (SEC) has been under pressure to approve a Bitcoin exchange-traded fund (ETF). Various reports have now shown that the regulator could, at last, approve such as product.
A report by Bloomberg cited sources close to the matter, who stated that the SEC could approve a Bitcoin futures exchange-traded fund in the country as soon as next week. If the product is approved, it will be a step towards a favourable crypto environment in the country.
A US Bitcoin Futures ETF
The anonymous source from the Bloomberg report stated, “The regulator isn’t likely to block the products from starting to trade next week.”
A crypto futures ETF is more favourable to regulators than a crypto ETF because they are easy to regulate. The Chicago Mercantile Exchange (CME) oversees futures products, and investors to want to invest in them have to place cash on margin.
The SEC Chair, Gary Gensler, has shown positivity towards approving a crypto futures ETF. Gensler has previously stated that the commission was more likely to approve funds based on the CME-traded Bitcoin futures. This statement added weight to the potential of crypto futures funds being approved.
While futures funds could finally get the green light, Bitcoin ETFs are still having a hard time getting the regulator’s approval. Dozens of companies have lodged applications for these funds, but none of them has gained the regulator’s approval, with the SEC pushing deadlines to further dates.
Companies filing for Crypto ETFs
Various companies have already made filings for a Bitcoin futures ETF. Eric Balchunas, a senior ETF analyst at Bloomberg, has speculated that the ProShares Bitcoin Strategy ETF will be the first one to gain approval. The SEC had set October 18 as the date when the decision regarding this ETF would be made.
The other ETF that will most likely be approved soon is the Invesco Bitcoin Strategy ETF. The decision regarding this ETF has already been postponed several times; hence it could be approved a day after the ProShares Bitcoin Strategy ETF.
A tweet made by Balchunas on October 15 stated that the approval for these funds would commence next week. “Odds now over 90% IMO,” he added.
JUST IN: Bitcoin futures ETFs said not to face any opposition at SEC, according to multiple sources confirming this (aside, I’m hearing same thing). Pretty much done deal. Expect launches next week. Nice late night story from @kgreifeld @VildanaHajric @benbain pic.twitter.com/axT6ME4MeI
— Eric Balchunas (@EricBalchunas) October 15, 2021
Ark Invest has also been pushing its crypto strategy, with a recent announcement that it would be launching a Bitcoin futures ETF. To effect this launch, Ark Invest will be partnering with 21 Shares. During the announcement for this fund, Ark Invest stated that there was a high likelihood that this product would gain the regulator’s approval.
VanEck and Valkyrie are the other investment firms that have filed for crypto ETFs. The approval for these finds could also happen this month, as the due date for a decision by the regulator is October 25. There is a high likelihood that these two funds will be available on exchange platforms in the coming weeks.
If the approval for these funds happens in the coming days, as analysts have speculated, it could mark a major bullish rally for Bitcoin. Data from Coingecko shows that in the past 24 hours, Bitcoin has touched the highs of $60,000. At the time of writing, the primary cryptocurrency was trading at around $59,600. Hence, next week could see a rally pushing Bitcoin towards new record highs as the excitement surrounding ETF approval continues to build.
Looking to buy or trade Bitcoin (BTC) now? Invest at eToro!
67% of retail investor accounts lose money when trading CFDs with this provider
Read more:
Join Our Telegram channel to stay up to date on breaking news coverage
