After years of trial and error by potential fund sponsors, cryptocurrency investing is finally opening up to the masses with the tacit US approval of an exchange-traded Bitcoin fund.
The Securities and Exchange Commission (SEC) gave the industry its first go-ahead for Bitcoin futures ETFs on Friday after the five regulator commissioners met on the issue. start next week.
The company issued a modified post-effective prospectus on October 15th stating that it is expected to be launched on Monday October 18th, although the Fund may not start trading immediately.
Proponents of a Bitcoin ETF believe the product will be more accessible to Bitcoin enthusiasts than the actual cryptocurrency by offering investors a regulated alternative to the underlying digital asset. The first product tracks bitcoin futures and not the bitcoin price. However, EU President Gary Gensler noted that he believes that futures-based products could offer investors greater protection because of the laws to which they are subject.
The SEC has explicitly denied requests for Bitcoin ETFs in the past, but does not have to officially approve them. Under federal law, the SEC may allow a motion to go into effect instead of making a formal announcement.
Long time coming
Industry participants have long tried to launch a Bitcoin ETF, and Gemini founders Tyler and Cameron Winklevoss looked for an ETF for the first time in 2013. The SEC has denied all previous filings, and yet you still need to review more than 30 other recent filings. Applications.
However, the SEC should approve the launch of futures ETFs this year. Gensler’s comments in support of a futures ETF suggest that he will not allow a spot market ETF to be launched anytime soon.
“I very much doubt the SEC will approve the product this year,” said Seyffart.