Bitcoin etf: Wall Street could get four Bitcoin futures ETFs by the end of the month
This month, the Securities and Exchange Commission must once again approve, reject or delay a set of requests for exchange-traded funds based on the largest digital currency. This time around, they’re all following a format that SEC Chairman Gary Gensler said could be welcomed by the regulator.
They will hold Bitcoin futures rather than the digital asset itself, and are filed under the Investment Companies Act of 1940 – a route that offers better protection for investors.
All of this is raising hopes in the $ 6.7 trillion US ETF industry and beyond, after years of delays, the world’s largest market may finally be ready to join in the fun. Meanwhile, dozens of cryptocurrency exchange traded products have already been launched in Canada and across Europe.
“We’re pretty optimistic about the approval here,” said James Seyffart, ETF analyst at Bloomberg Intelligence. “We just can’t see Gensler and the SEC doing all they can to express positive comments on a Bitcoin futures ETF in 1940 at the end of September and then deny them all less than a month later.”
In a move that raised more hope among crypto advocates, the regulator asked two issuers to withdraw their Ethereum-futures ETF deposits during the US summer, but made no request to this kind on similar Bitcoin-based apps.
This week, it also approved the Volt Crypto Industry Revolution and the Tech ETF (ticker BTCR). The actively managed product plans to invest the majority of its assets in companies “exposed to Bitcoin and its supporting infrastructure,” according to its prospectus. This is one of many efforts to at least provide investors with indirect access to cryptocurrencies.
“Given that ETF issuers have relentlessly pursued Bitcoin ETFs for over eight years now, it seems somewhat misleading for the SEC to encourage more deposits at this point just to disapprove of them,” said Nate Geraci, chairman of the consultancy firm ETF Store. “The approval of Bitcoin ETFs based on futures appears to be an easy way for the SEC and President Gensler to secure a ‘win’ in terms of looking forward-looking crypto.”
As long as the SEC doesn’t distinguish between different filings and goes through the usual process, a ProShares product could be the first to get the regulator’s blessing after the company was the first to make the appropriate contract-based filing. eventually, said Seyffart of BI.
Valkyrie Investments, a smaller entry-level issuer, also has a good chance, he said. Its deposit was a week behind that of ProShares, but the proposed ETF would only hold Bitcoin futures. On the other hand, the ProShares application includes clauses that would grant its fund the possibility of holding instruments linked to Bitcoin.
At the start of the month, there were nine requests for Bitcoin futures in the queue, according to a tally maintained by BI, although two were filed under the 1933 law that allows exchanges to list commodities. . Another, filed under the 1940 law, offers to hold a combination of crypto stocks and Bitcoin futures. Crypto lender BlockFi Inc. on Friday applied for a futures contract that would also invest in short-term fixed income securities and other investments.
Cameron and Tyler Winklevoss, the twin founders of Gemini Trust Co., filed the first application for a Bitcoin ETF in 2013. Approval has been out of the reach of issuers for years because the crypto space is too volatile and vulnerable to manipulation.
But not everyone is convinced that approval is now within reach.
“The odds of approval over the next month are better than 50/50, but I wouldn’t be surprised if the SEC kicked this a few more times with the physical Bitcoin ETF,” said Dave Nadig, Chief Investment Officer. responsible for the ETF Trends data provider. “Clearly what is needed is a real regulatory plan. We haven’t had a clue yet that one is really coming soon. ”