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The Bloomberg report cited sources familiar with the matter, who stated that some of the filings whose deadlines are close could get the regulator’s approval. Some of the funds that are most likely to debut trading from next week include Invesco and ProShares. The funds by these two firms are based on futures contracts.
The SEC Chief, Gary Gensler, has been more open towards crypto futures ETFs. According to Gensler, these funds offered significant investor protection measures compared to direct crypto ETFs.
The senior ETF analyst at Bloomberg, Eric Balchunas, also supported the speculations of a Bitcoin futures ETF being approved. In a Twitter thread, Balchunas stated that multiple sources had confirmed this approval, and the odds of approval were now more than 90%.
The possibility of approval even became more likely after a recent tweet by the SEC seeking to educate people more about Bitcoin futures. A tweet posted on Thursday provided a link to a page where investors could learn more about Bitcoin futures.
the tweet read. As much as the SEC has not provided any official statement on the matter, these developments support the Bloomberg report that a crypto futures fund will be launched next week.
Applications for crypto futures at the SEC’s desk have been piling up since Gensler’s remarks weeks back, where he stated that the regulator was more likely to approve a futures contract. Among the fund managers that have filed their applications for crypto ETFs include Galaxy Digital Funds, Invesco, ProShares, Valkyrie, and VanEck Bitcoin Trust.
Cathy Wood’s Ark Invest recently filed an application for a Bitcoin futures ETF this week, marking the firm’s strong push in the crypto space. Crypto ETFs are already functional in Canada, with the firms that have launched these funds enjoying an influx of investors seeking to invest in the funds.
The firm that receives approval for the first US Bitcoin futures fund will have an advantage in the market because they will tap into the investors looking to gain exposure to Bitcoin.
News of a Bitcoin futures ETF debuting in the US market has led to a major bullish rally in the primary cryptocurrency. This week, the coin dipped towards $54,000 after Binance halted OTC trading for the Chinese yuan. However, the coin has now rallied towards highs of $59,000.
On October 15, the coin touched $60,000, which is a six-month high. This level places the coin closer to the all-time high of $64,895 reported in mid-May when the market was at its peak. Data from Coingecko shows that the coin is currently trading at $59,400. More gains could also be reported due to an influx of institutional investors who want to gain more from this rapidly growing market.
Bitcoin’s market cap is also at $1.1 trillion, which is also inching closer to new highs. A more intense rally is expected to happen next week if the speculations of a Bitcoin futures ETF come true.