At a time when ETF expectations for Bitcoin are increasing, news from ProShares has increased the risk appetite of investors.
Bitcoin surged above $60,000 to reach the $63,000 mark after news that ProShares will launch its Bitcoin futures ETF on Monday.
The leading cryptocurrency, which is only 5% away from its peak, continues to trade above $61,000 as of now.
The news that ProShares will release its Bitcoin futures ETF on Monday appears to have caused some misunderstanding.
First of all, it’s worth remembering that there is no explicit SEC approval for the ETF in question. Technically speaking, the SEC’s explicit approval is not required for this ETF to be launched. It seems sufficient that the SEC does not oppose it.
Under US law, such ETF applications can be filed 75 days after the filing date, unless a decision is made by the SEC. This is how ProShares’ Bitcoin futures ETF is also being released.
While there is a technical difference, there is no explicit SEC approval for this ETF. However, experts think that the fact that the SEC does not object to this is a very important development and will be considered as “tacit approval”.
No Bitcoin ETF approval has yet been received from the SEC for spot Bitcoin transactions. The ETF that ProShares will launch will be a Bitcoin futures fund.
The ETF in question will be the first crypto futures-based product listed on US exchanges.
In September, we reported that the SEC and SEC Chairman Gary Gensler were keen on Bitcoin futures ETFs and pointed to October. We believe that this approach was instrumental in the SEC’s opposition to ProShares’ application.
Tomorrow will be a new “first” day for Bitcoin. While it is a matter of curiosity how the ETF will perform, crypto money investors are expected to have an active day.
It remains unclear how the SEC will decide on ETFs for spot Bitcoin products.
*Not Investment Advice.