financemagnates.com
After years of hostility, the US Securities and Exchange Commission (SEC) is moving ahead to allow the first Bitcoin exchange-traded fund (ETF) in the country, Bloomberg reported on Friday.
Though the regulator is yet to make any official confirmation, the publication cited ‘people familiar with the matter’ to reveal that the SEC “isn’t likely” to block trading with such crypto products from next week.
More than a dozen of companies have applied with the SEC, seeking permission to list Bitcoin ETFs. However, the regulator is likely to greenlight Bitcoin futures ETFs that are filed under the existing mutual fund regulations.
Two of such Bitcoin futures ETFs seeking SEC approvals were brought in by ProShares and Invesco Ltd.
Many Hints of Approval
The investor education account of the regulator also tweeted that “before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits,” signaling the upcoming approval.
SEC previously rejected and delayed the applications of several well-known companies seeking permission for Bitcoin ETF. SEC Chief Gary Gensler even called the crypto market “wild west”, signaling more regulatory oversight on the market.
He, however, later hinted at favoring crypto funds based on the CME-traded Bitcoin futures that were filed under the robust laws of the Investment Company Act of 1940.
Meanwhile, the cryptocurrency market has already reacted to the report of the possibility of the approval of a Bitcoin fund. The price of the cryptocurrency is signaling a bullish uptrend and is inching closer to the $60,000 mark.
While the US is yet to approve a Bitcoin ETF, neighboring Canada and Europe took a different approach and approved dozens of Bitcoin and other ETFs.