coincodex.com
Key highlights:
- U.S. securities regulator SEC is likely to allow Bitcoin futures ETFs
- The news was reported by Bloomberg, which cited sources familiar with the matter
- BTC responded to the news quickly, and almost reached $60,000
SEC likely to allow Bitcoin futures ETFs, new report says
The U.S. Securities and Exchange Commission (SEC) is likely going to allow the first Bitcoin futures ETFs to start trading in the U.S. market, according to a report by Bloomberg. The publication cited to unnamed sources that are “familiar with the matter”.
In addition to the Bloomberg report, another indication that the SEC is getting ready to allow Bitcoin futures ETFs is that the agency’s Investor Education account on Twitter published a post related to such funds:
“Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.”
Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.
— SEC Investor Ed (@SEC_Investor_Ed) October 14, 2021
Check out our Investor Bulletin to learn more: https://t.co/AZbrkpfn8F
Examples of companies that have filed proposals for Bitcoin futures ETFs include VanEck, ProShares and Invesco. According to the Bloomberg report, the applications that the SEC is likely going to allow are filed under mutual fund rules.
The report has already had a positive impact on the price of BTC, which is now within striking distance of its all-time high. The price of the world’s largest cryptocurrency promptly jumped from $57,200 to almost touch $60,000, but buyers encountered resistance at that price level. Regardless, Bitcoin is now still trading at its highest price since early May.
Cryptocurrency traders have been closely watching the Bitcoin ETF saga in the United States for multiple years now. However, sentiment about the SEC approving a Bitcoin ETF was already positive in the market, so the news might have already been priced in to some extent.
Previously, the majority of Bitcoin ETF applications proposed funds that would track the price of Bitcoin on spot markets. However, the SEC rejected all such applications, citing market manipulation as their primary concern. In response, prospective issuers began proposing ETFs based on Bitcoin futures that are trading on the CME, a regulated exchange in the United States.