According to insider reports, the SEC is about to approve the first Bitcoin Futures ETF. That would be a bang.
Approval of a futures-based Bitcoin ETF is apparently imminent. As Bloomberg with reference to an unnamed SEC insider source first reported, becomes “the regulator […] likely not to block trade in the products for the next week. “
Specifically, it is about ProShares and Invesco Ltd. Bitcoin Strategy ETF. The deadline for the SEC’s decision in favor of the ETF expires on October 18.
In contrast to the Spot ETF, a futures ETF indexes Bitcoin futures contracts, in this case the CME Bitcoin Futures. The message comes shortly after an official SEC Twitter account warned about the risks of a Bitcoin ETF:
Some see it as a confirmation of that of Bloomberg formulated announcement.
In the course of the report (it should be emphasized that it is still unconfirmed at the moment), Bitcoin and the overall market rose strongly. At the time of writing, BTC is trading at US $ 59,840 (USD) – and is thus heading for the psychologically important mark of US $ 60,000, which was briefly cracked in the early hours of the morning, but now represents a resistance.
The news not only pushes Bitcoin a good bit towards the all-time high – that’s at 64,000 US dollars – but is also giving the overall market steam under the boiler. Ether (ETH), the second largest cryptocurrency by market capitalization, swings 5.5 percent north in 24 hours and is trading at $ 3,840 at the time of writing. With a market capitalization of USD 2.5 trillion, the overall market is 2.7 percent in the green.
Bitcoin ETF – a tiresome topic
The crypto community has been expecting approval of an index fund with a bitcoin focus in the USA for years. However, the responsible authority has so far refused the accolade of the cryptocurrency. The reason was concerns about volatility and possible price manipulation. With a market capitalization of over US $ 1.2 trillion, digital gold has grown into one of the largest assets of all – concerns on the part of the most powerful financial regulatory authority seem to have been untenable for some time.
Displeasure over the SEC’s lack of decisiveness gained momentum this year as the agency had made a habit of procrastinating applications. Instead of an acceptance or rejection, there were only umpteen extensions of the deadline.
In August, SEC chief Gary Gensler announced that he would prefer a futures-based ETF. In the course of this, a large number of companies switched from spot-based to futures-based applications. Four deadlines alone expire this month. Among other things, ProShares and Invesco Ltd. Bitcoin Strategy ETF.