Although the U.S. Securities and Exchange Commission is doing everything it can to delay making a decision on the matter, it is literally swamped with multiple applications for Bitcoin ETFs. However, an ETF based on Bitcoin futures contracts is reportedly on the verge of passing. Explanations.
A first BTC ETF as early as this October 18?
Since December 2017 and the launch of the first Bitcoin (BTC) futures contracts offered by the CME and CBOE exchanges, the cryptosphere has been anxiously awaiting approval of an Exchange-Traded Fund (ETF, or Exchange Traded Fund) based on the king of cryptos.
This interminable wait will probably end very soon, if we believe a publication of Bloomberg dated October 15. It says that the Securities and Exchange Commission (SEC) is about to authorize the first ever Bitcoin futures ETF.
In the exact words of the newspaper:
“It is now unlikely that the regulator (the SEC) will block the launch of these products on the market next week”
Monday, October 18, 2021 could thus see the start of trading in the BTC futures ETF offered by ProShares, called the ProShares Bitcoin Strategy ETF.
Bitcoin on its way to its ATH after this ETF news?
While a last-minute reversal is still a possibility, the crypto market seems very excited about this ETF prospect. The price of BTC has indeed blithely crossed $59,000, and even touched $60,000, after the Bloomberg publication. First step before a return to its all-time-high (ATH) around $64,000?
The cryptosphere has been waiting so long for the launch of such a Bitcoin derivative, that it may well get 2 for the price of one. Indeed, without SEC intervention, a second ETF – also based on BTC futures – is expected to begin trading on Tuesday, October 19, 2021.
The latter, offered by Invesco Ltd is called the Invesco Bitcoin Strategy ETF. These two ETFs will be available on the Chicago Mercantile Exchange (CME) if they are not stopped at the last second by the US regulatory commission. With a $6.7 trillion ETF market, the start of trading in such products on Bitcoin would open up the possibility for ever more investors to gain exposure to the king of cryptocurrencies.
Should the SEC react at the very last moment to oppose these 2 ETFs, let’s remember that VanEck’s is due to receive its final decision (which cannot be postponed) this November 14, 2021. And if that’s still not enough, 3 more BTC ETF decisions, with no possible postponement, are expected by January 1, 2022. The SEC is going to have to capitulate, sooner or later.