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BTC Futures ETF: one company joined, two withdrew

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In recent days, the list of companies applying to the US Securities and Exchange Commission (SEC) for approval of the cryptocurrency ETF has expanded to include one new company. However, two of them withdrew their applications.

BTC Futures ETF has another applicant

The approval of BTC Futures ETFs, which is a type of ETF that is not tied to BTC spot trading, but only to futures contracts, was recently applied for by AdvisorShares. She joined VanEck, ProShares, Valkyrie Digital Assets, Invesco and Galaxy Digital, which had applied for this type of ETF on BTC in recent weeks.

According to analysts, the BTC Futures ETF has a better chance of being approved, as SEC chief Gary Gensler himself indicated three weeks ago that his commission would be easier to regulate and control than traditional spot ETFs on BTC. The problem, however, is that, according to analysts, this type of ETF on BTC would not be nearly as attractive among investors as traditional spot ETFs.

VanEck and ProShares withdrew their applications

In addition to new applications for BTC Futures ETFs, we informed you last week that similar ETFs linked to futures contracts, but this time in connection with a cryptocurrency ETH, asked VanEck and ProShares. However they decided to withdraw the documents from the SEC just two days after the application was filed – probably because they had been told that their filing had no chance of success.

However, VanEck and ProShares still have valid BTC futures ETF applications with the SEC. VanEck is also waiting to comment on a request for a traditional spot BTC ETF, which is more in demand among investors. Of all applicants, they should be the first to know the final verdict by October 2021 at the latest.

Will any application obtain permission?

At present, the prevailing view is that BTC futures ETF applications have the best chance of approval. This follows from the words of Gary Gensler, who made it quite clear with his claims that the SEC is probably not ready to allow traditional spot Bitcoins ETFs, as the BTC market is not yet sufficiently mature. The main problem may be that the SEC still perceives foreign exchanges where BTC is traded as insufficiently regulated, which can lead to manipulation of its price.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
BlackRock (IBIT), the Grayscale Bitcoin Trust (GBTC), Fidelity (FBTC), Ark Invest/21Shares (ARKB), Bitwise (BITB), Franklin (EZBC), Invesco/Galaxy (BTCO), VanEck (HODL), Valkyrie (BRRR), WisdomTree (BTCW), Hashdex (DEFI)

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