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The Securities & Exchange Commission may soon accept the first bitcoin exchange-traded fund backed by derivatives of BTC futures agreements.

Bitcoin Futures ETF is Certain

According to a Bloomberg report, the SEC is sure to approve the first BTC futures exchange-traded funds (ETFs). The publication also noted that the SEC might greenlight BTC futures applications as soon as a week from now.

The SEC is currently handling various BTC futures ETF applications needing to decide on 4 of them due this month. As reported by Bloomberg, the financial regulator does not oppose authorizing the applications. Those applying include ProShares, Invesco, VanEck, as well as Valkyrie.

ETFs are investment products that follow the worth of an underlying asset. For many years, the SEC has encountered problems with physically-backed ETFs. It’s turned down several Bitcoin ETF applications pointing out investor protection concerns as well as a lack of governing oversight.

However, in August of this year, SEC chair Gary Gensler claimed he would prefer permitting an ETF connected to cash-settled Bitcoin futures traded on a regulated exchange such as the Chicago Mercantile Exchange.

The funds tracking the Bitcoin futures market would be managed by the Future Investment Company Act of 1940. Such ETFs are anticipated to have “significant investor protections” that get over the firm’s preliminary problems.

Gensler’s remark sparked a positive outlook, leading many investment funds to submit applications for a BTC futures ETF. If approved, the 1st-ever Bitcoin futures ETF could be a milestone moment for the crypto industry, with potential exposure to the asset class for many organizations.

Amidst the bullish attitude fueled by ETF opportunities, BTC has increased 35% this month, just under its all-time high.

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