The US Securities and Exchange Commission is more likely to approve a futures-based bitcoin exchange-traded fund (ETF) this month, boosting the market by more than 30%.
On Friday, bitcoin topped $60,000 for the first time since April, as investors cheered the prospect of the SEC approving the first US bitcoin futures ETF in a matter of days.
On Friday, the Securities and Exchange Commission (SEC) approved bitcoin futures ETFs for the first time in the sector, after a meeting of the regulator’s five commissioners.
With the implicit permission of the US from a bitcoin exchange-traded fund, cryptocurrency investment is now coming up to the public after years of trial and error by prospective fund supporters.
After a Wall Street watchdog granted the go-light to a fund, it will soon be able to invest in Bitcoin (BTCUSD) through a US-listed exchange-traded fund (ETF). It allows investors to invest in businesses with substantial exposure to the world’s most popular cryptocurrency.
Proponents of a bitcoin ETF argue that by offering investors a regulated alternative to the underlying digital asset, the product will be more accessible to individuals interested in bitcoin than the real cryptocurrency.
Cathie Wood‘s Ark Invest has taken another step into the cryptocurrency world, filing an exchange-traded fund of bitcoin futures with the Securities and Exchange Commission on Wednesday.
According to the ETF issuer Alpha Architect’s application, the ARK 21Shares Bitcoin Futures Strategy ETF will be known as ARKA. Ark joins a group of more than a dozen Wall Street players seeking to have a crypto-focused exchange-traded fund approved by US authorities.
These ideas, which are based on futures contracts, provide “substantial investor safeguards” not seen in the Bitcoin ETF applications previously rejected by the SEC.
Anticipation has been further fueled by the regulator that approved the Volt Equity ETF last week, according to Will Hamilton, head of trading and research at digital asset management firm TCM Capital.
Volt’s approval of the SEC’s bitcoin stock fund, which has been highly contested, had already given digital asset investors hope that the regulator is approaching crypto ETFs, albeit on its own terms. , paving the way for imminent approvals later this year and in 2022.
On October 5, the Securities and Exchange Commission (SEC) approved the Volt Crypto Industry Revolution and Tech ETF, which will track the performance of “companies of the Bitcoin industry revolution”, in other words, companies that maintain most of their assets or investments in Bitcoin or that generate most of their profits through mining activities.
In fact, Volt Equity CEO and founder Tad Park believes that SEC Chairman Gary Gensler is pro-Bitcoin, but that the markets misunderstand his stance on crypto regulation in the United States.
Next week, the first Bitcoin exchange-traded fund (ETF) may begin trading on the NASDAQ, the world’s second-largest stock exchange. A document that has been circulating on Twitter since Friday suggests this.
Nasdaq has authorized the registration and listing of administrator Valkyrie’s Bitcoin ETF, according to a document dated October 15, suggesting that the fund may begin trading in the market shortly. Nasdaq VP of Listing Ratings Eun Ah Choi said in the letter that Valkyrie’s Bitcoin ETF shares had been certified.
Furthermore, Coinbase proposed the creation of a special regulator as a possible solution to the lack of regulatory clarity and enforcement in the cryptocurrency markets, as it believes that digital assets should be treated differently than stocks.