The US Securities and Exchange Commission may break new ground for the cryptocurrency ecosystem by giving the green light to the first exchange-traded fund to invest in bitcoin futures in the next few weeks.
The SEC has announced that five of the exchange-traded funds that plan to invest in bitcoin futures contracts establishing, not establishing or postponement will take a decision.
Submissions from ProShares, Invesco, VanEck, Valkyrie and Galaxy potential endorsement The dates are 18 October, 19 October, 25 October, 25 October and 1 November.
Applications submitted each August, the first of which is ProShares’s, Investment Companies Act 1940 was made accordingly.
Unlike funds that will invest in more diverse assets, such as physical commodities or currencies, ETFs that will invest heavily in securities are required to register under the Investment Companies Act.
Efforts to create a bitcoin ETF began with a 2013 application by Cameron and Tyler Winklevoss and have since Emphasis will be placed on ETFs that will invest in physical bitcoins way it progressed.
SEC Chairman Gary Gensler said at a conference organized by the Financial Times that the 1940 law “provides a significant level of protection to investors” say and bitcoin investing in futures contracts He said he “looks forward to the review” for ETFs that plan.
It can be ready in a few days after approval
crypto money, after Canada The idea that it could gain a foothold in the US$6.7 trillion exchange-traded fund industry has not been abandoned, although none of the applications have been accepted so far.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said that the applications the SEC has turned down for years are made under the Securities Act of 1933; the aforementioned applications are subject to the 1940 Law. stating that, one of them 75% chance of approval in October gives.
A conversation with James Seyffart of Bloomberg Intelligence note maker Although the SEC has recently turned down applications by VanEck and ProShares for Ethereum futures, Balchunas said. bitcoin futures He considers the fact that he has not turned down the applications made for him as a positive sign.
Cryptocurrency ETF when investing It is expected to provide convenience. According to the Financial Times, Matt Hougan, CIO of Bitwise Asset Management, “The beauty of ETFs is that they can be seamlessly integrated into the way financial advisors work. (Bitcoin ETF) so it will change the game and pave the way for the market significantly.” said.
According to a survey released this year, investors 64%, a crypto investing through an exchange-traded fund prefers. The rate of those who prefer to invest directly is at the level of 16%.
If the SEC approves one of these applications in the next few weeks, Balchunas said the fund will be released. “in a very short time” can be established and It can be opened for processing before the end of the month. is thinking.