Investment in cryptocurrencies is finally opening up to the masses thanks to US approval for a publicly traded BTC futures fund. The Securities and Exchange Commission (SEC) gave the green light to the first ETF of its kind on Friday after five commissioners met on the issue. ProShares, which applied for a BTC strategic ETF last summer, may be the first to be launched next week.
SEC approves the first ETF of BTC futures
The company filed a POS AM for BTC futures ETF on October 15, which only happens when everything is ready to go. Filings of SEC POS AM are filed by companies that have filed a prospectus for registration with the US Securities and Exchange Commission. This is an additionally effective change to this registration statement, which is not effective immediately after submission.
Proponents of BTC ETFs believe that the product will be more accessible to individuals interested in exposure to Bitcoin (BTC) because it will provide investors with a regulated alternative to the underlying digital asset. However, the first product will follow BTC futures, not directly the price of the primary cryptocurrency. SEC President Gary Gensler said he believed futures-based products could provide stronger investor protection through the laws under which they operate.
ETFStore President Nate Geraci said it is a step forward for digital assets and connects them with the more traditional financial sector. He confirmed that filing a supplement to the prospectus is a confirmation of SEC approval.
“It is an encouraging step for the future of cryptocurrencies when we see SEC President Gensler helping mainstream investors access the BTC exposure more easily,” he said. “The availability of the BTC ETF will now attract more investors and facilitate greater education about the entire sector.”
James Seyffart, an analyst at Bloomberg Intelligence, also confirmed that the filing is a sign of the fund’s launch.
It also expects that the launch of the futures-based ETF will act as a bridge to the final launch of the spot-based ETH.
Sector participants have long been trying to launch BTC ETFs, with Gemini Tyler and Cameron Winklevoss coming to terms with this for the first time in 2013. The SEC has so far rejected every application and still needs to consider more than 30 other current applications.
However, it is likely that the SEC will only allow the launch of BTC futures ETFs this year. Gensler’s comments suggest that the SEC will not approve spot market-based ETFs in the near future.
“I very much doubt that the SEC will approve this product this year,” Seyffart said.
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