The long wait for a Bitcoin (BTC)-Exchange-Traded Fund (ETF) could be over soon. This is according to sources reported by financial media giant Bloomberg.
Long-awaited Bitcoin exchange-traded product
Bloomberg has reported that the US Securities and Exchange Commission is ready to approve the first Bitcoin futures on exchange-traded funds in the country. The anonymous sources said the following about this:
“The regulator is unlikely to prevent the products from trading next week.”
A futures product is likely to be the first to be approved. This is because it is rated more favorably by the regulators. Futures are managed by the Chicago Mercantile Exchange (CME) and require investors to place bets on fiat money (such as the € or the $) and then trade them.
Positive consequences for Bitcoin price
Eric Balchunas, senior ETF analyst at Bloomberg, is confident that the ProShares Bitcoin Strategy ETF could be the first to be launched. Since the decision deadline is October 18. He announces this in a Tweet. The Invesco Bitcoin Strategy ETF can be approved the following day.
JUST IN: Bitcoin futures ETFs said not to face any opposition at SEC, according to multiple sources confirming this (aside, I’m hearing the 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
SEC Chairman Gary Gensler has expressed a preference for funds based on CME-traded Bitcoin futures filed under a 1940s law.
Yesterday, Ark Invest, along with 21Shares, filed an application for an ETF that will trade Bitcoin futures. This indicates that they too were convinced that an approval is imminent. There may be several more BTC ETFs currently in the approval process.
Deadlines for ETF applications from VanEck and Valkyrie are also approaching October 25. So it could be that a large number of them will be on the exchanges in the coming weeks. Monday, October 18, should the BTC ETF actually go live on that day, could be a big day for Bitcoin prices. Markets will be eagerly awaiting this historic event. Bitcoin had risen to $59,600 before retreating slightly.