US Securities and Exchange Commission (SEC) may allow Bitcoin Futures Exchange Traded Funds (ETF) under mutual funds rules.
The US SEC might be on the path to allow the first U.S. Bitcoin futures ETF, Bloomberg reported citing anonymous sources.
The regulator is unlikely to block the products that will begin trading next week, said the people in the know.
The first time a Bitcoin ETF was proposed to SEC was back in 2013 by Cameron and Tyler Winklevoss. Unfortunately, their application was rejected.
This time it’s different.
Contrasting with the previous Bitcoin ETF applications, the current proposals by ProShares and Invesco Ltd. are based on futures contracts. Moreover, they were filed under mutual fund rules that SEC Chairman Gary Gensler has said provide “significant investor protections.”
The SEC has always expressed its apprehensions about the pitfalls in the crypto industry that can harm investors. It is concerned about price manipulation, inadequate liquidity, and the sudden price swings of Bitcoin.
SEC chief Gary Gensler has a hawkish stance against digital assets. He even likened the crypto industry to the ‘Wild West’ with no rules.
In a reversal, he has indicated that he now favours funds based on CME-traded Bitcoin futures filed under a 1940s law.
A few hours ago, the SEC tweeted about an Investor Bulletin for the public, having guidelines about investing in a fund holding Bitcoin futures.
This too is a signal towards an upcoming approval.
After this tweet, the market went into a frenzy with Bitcoin climbing by over as high as 59,770 USDT at the time of writing, registering an increase of over 3% in past 24 hours.
By the end of this month, four futures-backed Bitcoin ETFs could be seen trading on U.S. exchanges, as deadlines for applications from VanEck and Valkyrie are also approaching.
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