US SEC Has Approved First Bitcoin ETF

SYNOPSIS

  • Bitcoin’s all-time high is approaching.
  • The Securities and Exchange Commission (SEC) of the United States will not oppose a bitcoin ETF based on futures, according to a report.
  • Investors are getting ready for the ETF launch next week.

With the tacit U.S. acceptance of a bitcoin futures exchange-traded fund, cryptocurrency trading is finally coming up to the mainstream after years of trial and error by would-be fund sponsors.

On Friday, the Securities and Exchange Commission (SEC) approved bitcoin futures ETFs, a first for the market, following a meeting of the regulator’s five commissioners.

ProShares, which applied for its Bitcoin Strategy ETF this summer, could be the first to begin trading next week.

On Oct. 15, the company filed a post-effective amended prospectus, stating that the fund will begin trading on Monday, Oct. 18. However, the fund may not begin trading immediately.

Proponents of a bitcoin ETF claim that by providing investors with a regulated alternative to the underlying digital asset, the product will be more readily accessible for those interested in bitcoin than the actual cryptocurrency.

The first product, on the other hand, will follow bitcoin futures rather than the price of bitcoin itself.

Due to the laws under which futures-based products operate, SEC Chair Gary Gensler believes they may provide superior investor protections.

The SEC has previously expressly rejected bitcoin ETF proposals, but it is not required to do so now.

The SEC can simply allow an application to become effective rather than making a public notification under federal law.

The form is “a step forward” for digital assets and integrating them with the more traditional financial industry, according to ETFStore President Nate Geraci.

He also congratulated ProShare on their very first bitcoin ETF approval.

Further, he confirmed that the SEC’s tacit permission is confirmed by the filing of a post-effective modification.

THE TWITTER HAZE

People are constantly talking about the approval of their favourite crypto ETF and looking excited to invest in it.

Investor Anthony Pompliano posted a tweet regarding SEC approval of Bitcoin ETF.

Bloomberg intelligence, James Sayyfart posted a tweet mentioning the data provided by the Bloomberg’s data team in the process of adding the ProShares bitcoin Strategy ETF to the terminal.

A STEP TOWARDS GREAT FUTURE OF DIGITAL ASSET’s ETFs

A bitcoin ETF has long been sought by industry participants, with Gemini founders Tyler and Cameron Winklevoss originally requesting one in 2013.

The SEC has denied every previous application and has failed to make a decision on more than 30 more applications currently pending.

However, it’s likely that the SEC will only allow futures ETFs to begin trading this year. Gensler’s support for a futures ETF suggests that a spot market ETF will not be launched in the near future.

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