- The ProShares Bitcoin Strategy ETF, which was approved for U.S. trading by the SEC on Oct. 18, may be the first Bitcoin ETF to be approved for U.S. trade.
- However, that will just be a futures ETF; physically backed Bitcoin ETFs, which are in more demand, may not be approved for some time.
- According to Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, there’s a 75% probability the first Bitcoin ETF for the US will be approved this month.
In two weeks, on Oct. 18, the Securities and Exchange Commission is expected to finally approve a Bitcoin exchange-traded fund.
According to Nate Geraci, president of the ETF Store, and Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, many investors shouldn’t get too enthusiastic because it will just be a future-based Bitcoin ETF.
Geraci stated on Twitter on Sunday:
Balchunas predicted a 75 percent possibility of a Bitcoin ETF clearance this month, most likely the ProShares Bitcoin Strategy ETF on Oct. 18, in a tweet earlier in the day.
Eric Balchunas mentioned Nate and others and summed up his thoughts on future bitcoin ETFs.
Volt Equity’s ETF, which aims to track companies that hold a majority of their net assets in bitcoin or derive a majority of their profit or revenue from bitcoin-related activities like mining, lending, or manufacturing mining equipment, has been approved by the US Securities and Exchange Commission, according to Tad Pak, the fund’s CEO.
He refers to these as “bitcoin revolution companies,” and the actively managed fund is considering MicroStrategy, Marathon Digital Holdings, and Bitfarms, among others.
Investor Anthony Pompliano also tweeted about the upcoming Q4 bitcoin ETF launch.
THE ETF APPROVAL AND FUTURE
On October 5, the Volt Crypto Industry Revolution and Technology ETF was approved, and it will trade under the ticker BTCR.
Pak told in that he plans to list his company on the New York Stock Exchange in the next three weeks.
This roundabout investing strategy is important since the SEC, under Chair Gary Gensler, has been delaying the approval of bitcoin ETFs – with over two dozen in limbo – due to worries about market manipulation.
Despite Gensler’s recent declaration that he is more open to a bitcoin futures ETF, the US has yet to approve one. In contrast, Bitcoin ETFs are now available in Canada.
As a result, the Volt ETF will not own bitcoin directly. Instead, it plans to invest at least 80% of its net assets in “bitcoin revolution firms,” options, and exchange-traded funds (ETFs) that track those companies.
To balance the portfolio’s risk, the rest is projected to get broad equity market exposure.
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