All gas, no brakes. That’s the SEC’s sentiment regarding the potential launch of initial Bitcoin futures ETFs that could hit the market as early as next week. After fielding nearly a decade’s worth of crypto ETF applications, it’s without question a landmark moment.
Let’s take a look at what we know, what it means, and what could be in store in the days to come.
Give ‘Em The Green Light
According to an initial report from Bloomberg, Bitcoin ETF applications submitted from ProShares and Invesco Ltd. have no substantial hurdles to overcome with SEC deadlines approaching next week. The applications were submitted based on futures contracts and allow for investor protections under the SEC’s mutual fund rules.
Assuming no unexpected delays or obstructions in the eleventh hour of the process, this means that ProShares and Invesco Ltd. Bitcoin ETFs will have the green light to start trading next week. These will be the first crypto ETFs to hit the stock market in history. Bitcoin price action reflected quickly on the news, charging up to nearly $60K at the time of publishing.
The SEC has long been a skeptic and cynic of crypto products, leaving issuers jumping through a variety of hoops to try to circumvent the SEC’s heightened scrutiny.
Bitcoin showed immediate reaction to the recent reports showing that the SEC has no intent to halt applications of Invesco Ltd. and ProShares Bitcoin Futures ETFs. | Source: BTC-USD on TradingView.com
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The SEC: Past, Present & Future
While it’s very clearly a historical moment on the horizon, we can’t say the writing wasn’t on the wall. In fact, our team at NewsBTC just earlier in the day pointed out a number of different signs that suggested that October would indeed be the month that a Bitcoin ETF would finally come to market.
SEC Chair Gary Gensler has been painted as a crypto optimist, albeit a conservative one, since taking the role earlier this year. Last week, Gensler told Congress that the SEC had no intentions of “banning” cryptocurrencies, and the agency has been fielding Bitcoin ETF applications faster than they could be processed in recent months.
Furthermore, last month our team provided a deep dive into why the impending ETFs were far from unexpected, as Gensler hinted that futures could be the key to addressing his main concerns, which lied largely with lack of regulation. As our team notes, those futures ETFs require investors to put down cash on margin to trade as a form of collateral. That didn’t come without some skeptics, however, who believed that crypto spot products would be the first to hit the market.
Applications for VanEck and Valkyrie Bitcoin Futures ETFs are also outstanding and could be approved as well. Should those be approved, the stock market could be host to four Bitcoin ETFs this month.
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Featured image from Pexels, Charts from TradingView.com