First Bitcoin (BTC) ETF to launch on Monday
The Securities and Exchange Commission (SEC) approved ProShares’ application to launch a Bitcoin Futures Strategy ETF. Following the long-awaited news, the value of BTC surpassed $60,000 for the first time since mid-April, Bloomberg reports, citing its own sources.
Bitcoin futures now on the market
According to the application, the ProShares Bitcoin Strategy ETF could go live this coming Monday, 18th October. The underlying asset of the fund would be Bitcoin futures on the Chicago Mercantile Exchange (CME).
A meeting of the five SEC commissioners regarding the fund from ProShares took place on Friday, 15th October. Importantly, the approval conclusion is based on the updated prospectus and the expiry of the 75-day deadline for reviewing the application. Since the agency didn’t reject it within the deadline, this is considered approval, although the Commission has not yet given it publicly.
Bloomberg senior exchange-traded fund analyst, Erik Balchunas, has assured that the ProShares Bitcoin Strategy ETF will be the first to receive approval. He’s confident that this particular fund will be approved on Monday. The ETF Invesco Bitcoin Strategy will be followed by a positive decision, but this will not happen before the following day. The expert believes there’s a 90% chance of these Bitcoin ETFs launching.
Nasdaq has also expressed its willingness to add a similar Valkyrie Bitcoin Strategy ETF to the listing, which had previously filed Form 8-A for securities registration. ProShares completed the same form.
The launch of ETFs began to be actively discussed back in August 2021, when Bloomberg commented on the high probability of a positive decision by the regulator. However, the review of the applications has been postponed several times, but the SEC is obliged to either approve or reject the applications after the final deadline has passed.
With the approval of the Bitcoin ETF in the US, the next phase of adoption of the first cryptocurrency will begin, which will send an important signal to the market. It will also bring a flood of institutional money to the market. Since the beginning of October 2021, BTC has seen significant growth. The Bloomberg report states the following:
“An ETF should provide greater ease-of-use for retail investors looking to ride Bitcoin’s often hair-raising ups and downs. Like securities tracking oil and gold, it will change hands on relatively familiar U.S. stock-market venues, rather than in cryptocurrency or futures exchanges whose workings are imposing to some users.”
As you may recall, the SEC recently decided to approve the Volt Crypto Industry Revolution & Tech ETF (BTCR). The new fund doesn’t invest directly in cryptocurrency assets, but does provide exposure to the market indirectly. It invests in technology companies whose activities are explicitly related to Bitcoin and altcoins.
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