Bitcoin Futures ETF Is Coming, No SEC Opposition
October 15 2021 - 12:14AM
NEWSBTC
All gas, no brakes. That’s the SEC’s sentiment regarding the
potential launch of initial Bitcoin futures ETFs that could hit the
market as early as next week. After fielding nearly a decade’s
worth of crypto ETF applications, it’s without question a landmark
moment. Let’s take a look at what we know, what it means, and what
could be in store in the days to come. Give ‘Em The Green Light
According to an initial report from Bloomberg, Bitcoin ETF
applications submitted from ProShares and Invesco Ltd. have no
substantial hurdles to overcome with SEC deadlines approaching next
week. The applications were submitted based on futures contracts
and allow for investor protections under the SEC’s mutual fund
rules. Assuming no unexpected delays or obstructions in the
eleventh hour of the process, this means that ProShares and Invesco
Ltd. Bitcoin ETFs will have the green light to start trading next
week. These will be the first crypto ETFs to hit the stock market
in history. Bitcoin price action reflected quickly on the news,
charging up to nearly $60K at the time of publishing. The SEC has
long been a skeptic and cynic of crypto products, leaving issuers
jumping through a variety of hoops to try to circumvent the SEC’s
heightened scrutiny. Bitcoin showed immediate reaction to the
recent reports showing that the SEC has no intent to halt
applications of Invesco Ltd. and ProShares Bitcoin Futures ETFs. |
Source: BTC-USD on TradingView.com Related Reading | TA: Bitcoin
Key Indicators Suggest Upside Continuation To $62K The SEC: Past,
Present & Future While it’s very clearly a historical moment on
the horizon, we can’t say the writing wasn’t on the wall. In fact,
our team at NewsBTC just earlier in the day pointed out a number of
different signs that suggested that October would indeed be the
month that a Bitcoin ETF would finally come to market. SEC Chair
Gary Gensler has been painted as a crypto optimist, albeit a
conservative one, since taking the role earlier this year. Last
week, Gensler told Congress that the SEC had no intentions of
“banning” cryptocurrencies, and the agency has been fielding
Bitcoin ETF applications faster than they could be processed in
recent months. Furthermore, last month our team provided a deep
dive into why the impending ETFs were far from unexpected, as
Gensler hinted that futures could be the key to addressing his main
concerns, which lied largely with lack of regulation. As our team
notes, those futures ETFs require investors to put down cash on
margin to trade as a form of collateral. That didn’t come without
some skeptics, however, who believed that crypto spot products
would be the first to hit the market. Applications for VanEck and
Valkyrie Bitcoin Futures ETFs are also outstanding and could be
approved as well. Should those be approved, the stock market could
be host to four Bitcoin ETFs this month. Related Reading | Why
Bitcoin Could Extend Its Market Dominance As It Approaches $60K
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