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In the near future, the U.S. Securities and Exchange Commission (SEC) will decide on a number of applications for approval of exchange-traded funds based on bitcoin futures.
This month, the regulator may reject, approve or postpone four applications for bitcoin ETFs from ProShares Bitcoin Strategy ETF, Invesco Bitcoin Strategy ETF, VanEck Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF.
Bitcoin futures-based ETFs provide investors with access to bitcoin without the need to directly own the flagship cryptocurrency.
If the SEC approves the applications, then by the end of October, as many as four bitcoin futures ETFs will appear in the United States. After several years of procrastination, their approval will be welcome news for the US ETF industry with a turnover of $6.7 trillion.
ETF analyst from Bloomberg Intelligence James Seyffart believes that the regulator is likely to approve these financial products. Optimism appeared after SEC Chairman Gary Gensler’s statement that the Commission would favor bitcoin futures products registered in accordance with the Investment Companies Act of 1940.
We do not think that Gensler and the SEC, who at the end of September tried their best to make positive statements about bitcoin futures ETFs issued in accordance with the 1940 law, can reject them a month later,” he said.
The SEC also asked two issuers to withdraw their applications for Ethereum futures ETFs, but did not make a similar requirement for their bitcoin-based applications, which gives hope that a favorable decision will be made on bitcoin ETFs.
Since issuers have been seeking bitcoin ETF approval for more than eight years, the president of the ETF Store consulting firm, Nate Geraci, noted that it would be “somewhat hypocritical” for regulators to accept more applications only to reject them later.
For the SEC and Chairman Gensler, approving a futures-based bitcoin ETF looks like an easy way to achieve victory in terms of a forward–thinking approach to cryptocurrencies,” Geraci said.
However, some commentators are not so positive. According to Dave Nadig, chief investment officer of the information company ETF Trends, despite the fact that the probability of approval may be higher than 50%, the SEC’s refusal will also not be a surprise. In his opinion, the regulatory plan is much more important for the industry right now.
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