• If allowed by the United States’ Securities and Exchange Commission (SEC), the first futures index funds could begin trading on Wall Street as early as next week.
• Sources familiar with the matter said that there is no expectation for US regulators to prevent ETFs being offered by Invesco or ProShares.
• BTC’s price has risen steadily in recent weeks, reaching $60,000 by Friday 15th. This was due to positive ETFs expectations.

The first Bitcoin futures ETF can start trading at the New York Stock Exchange as soon as Tuesday, 19th. Although the Securities and Exchange Commission (SEC), could object to the filing, it seems unlikely.

The deadline for the SEC to issue a verdict on ProShares’ Bitcoin Strategy and the Invesco ETF IPO is at midnight on Monday, 18th. CNBC was informed by a source that it would be accepted by the US regulator.

The ETFs are hybrids of a stock and mutual fund. They were created using futures contracts.

Gensler is a former professor at MIT of cryptocurrency and a sharp critic of digital assets. Although he supports increasing regulations for blockchain-related products and recently loosened his harsh language against cryptocurrencies and became more condescending,

Bitcoin ETFs

The fund slated to be launched next week is the result of a year’s worth of efforts by the ETF sector, which manages assets worth approximately $7 trillion and has long been trying to convince the SEC to approve such a product linked to Bitcoin.

The source familiar with the ongoing discussions within the SEC explained that Gensler will not block the ETF’s IPO. Bloomberg News also handles this information. The Wall Street regulator’s spokesperson did not respond to the question, but neither ProShares nor Invesco representatives did.

On Friday the world’s most popular cryptocurrency was trading at above $60,000, a high it hadn’t seen since April 17th, boosted in part by the news that the SEC will allow ETFs.

BTC’s market price has increased by 40% in October and it is close to breaking the record of $64,800 set in April.

Invesco and ProShares will both offer indirect methods of Bitcoin investing to their customers. ETFs, which use bitcoin futures as their basis, have been listed on Chicago Mercantile Exchange.

The SEC’s Concerns

Another fund plans to launch a pure-gambling ETF, which is supported by bitcoins. But it’s unlikely that a decision will be made on these investments products anytime soon.

Recent years have seen the SEC argue that ETFs (and other types of similar funds) are too risky for approval due to fraud and volatility in the crypto market.

Gensler is concerned that negative players within the sector will cause undued pressure on cryptocurrency prices or artificial restrictions on the liquidity for certain assets.

“Currently, we just don’t have enough investor protection in crypto finance, issuance, trading, or lending,”
Gensler spoke in September before the Senate Banking Committee.

After drawing parallels between the current situation and the American Wild West the official demanded legislation to regulate cryptocurrency, supervise it, and provide more protection for investors.

Flipside

• Some investors find the ETF bitcoin futures disappointing.
• This is because they avoid having to convert them into futures, which are expensive and do not accurately monitor BTC spot prices.
• They prefer an ETF with no backing, backed only by BTCs.

Despite the SEC’s forecast of approval for ETFs, some analysts believe surprises could still occur. ETF Trends research director, Dave Nadig gives the funds involved “a 75% chance of approval.”

“A futures is a derivative of the spot market, so if you are comfortable with futures, why wouldn’t you be comfortable with the spot market?”
Michael Sonnenshein (CEO of Grayscale Investments)

If the regulatory agencies approve, then cryptocurrency asset manager will convert GBTC to a bitcoin ETF.

What are the reasons to care?

• ETFs that are based upon futures contracts have been approved. This is a major breakthrough for Bitcoin enthusiasts.
• The ETF market is excited about this new opportunity.

EMAIL NEWSLETTER

You can also join the crypto-verse

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7]
With just one click, you can unsubscribe at any time.

Continue reading on DailyCoin