Is a Sell the News Coming for BTC? | SEC to Accept Bitcoin ETFs [Most Likely]

Share IT

Key takeaways:

  • SEC to Accept Bitcoin ETFs | BTC’s price has risen by over $2,000 since the news broke, hitting over $59,000 as of press time.
  • The first Bitcoin future ETF to be approved by the SEC.
  • Bloomberg stated Proshares and Invesco to be two ideal platforms for next week’s approval.
Sec To Accept Bitcoin Etfs
SEC to Accept Bitcoin ETFs

According to Bloomberg‘s report — Asian markets rose on Friday, after a Wall Street surge fueled by strong corporate profits and as China eased restrictions on house loans at some of its major banks. The Securities and Exchange Commission of the United States is expected to approve the first Bitcoin futures exchange-traded fund (ETF).

Bitcoin futures ETFs differ from Bitcoin ETFs. Bitcoin ETFs are backed by bitcoin, whereas bitcoin futures ETFs are backed by bitcoin derivatives (futures contracts). The price of bitcoin futures may fluctuate from the current price of bitcoin due to market sentiment, therefore bitcoin futures ETFs may track the price of bitcoin inaccurately at times

The report was followed by @SEC Investor Ed‘s warning tweet about the possible risks and rewards of bitcoin contracts. “Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.”  

After the news broke out, Bitcoin was up approximately 3.5% in less than an hour, nearing $60,000 for the first time since May. However, as always in order to get on the Bitcoin train people started selling altcoins, and their prices began falling.

What about Bitcoin ETF?

Around 40 bitcoin ETF applications are now being reviewed by the SEC, with numerous decision deadlines on futures-linked products approaching next week. According to Bloomberg, at least some of them are anticipated to be approved by the regulator, paving the way for trading to commence. To accept the submissions, the SEC does not need to take any official action. Applications can become effective under federal law if the SEC lets a specified deadline pass without demanding modifications or instructing the prospective issuer to withdraw the file.

Bloomberg cited ProShares and Invesco as two ideas that might be approved to begin next week under this law. Unlike Bitcoin ETFs, which the SEC has previously refused to approve, the products offered by ProShares and Invesco are based on Bitcoin futures and are filed under the rules of investment trusts. The regulation, according to SEC Chairman @GaryGensIer will give “great investor protection.”

A spokeswoman for the Securities and Exchange Commission and a representative for ProShares declined to comment. Invesco did not reply to a request for comment right away.

Read more,

Share IT
Prabhat Tiwari
Prabhat Tiwari

I am someone who loves swimming in the ocean of DeFi and believes the disruptive technology, i.e., Bitcoin will change a lot of things and not just our financial system.

Get Daily Updates

Crypto News, NFTs and Market Updates

Can’t find what you’re looking for? Type below and hit enter!