The first bitcoin futures ETF in the United States is set to begin trading next week.
- The ticker "BITO" will be used for the ProShares Bitcoin Strategy ETF, which will provide exposure to bitcoin futures contracts but not the spot market.
- As of Friday afternoon, the Securities and Exchange Commission has not formally approved the launch of a bitcoin futures ETF, and the agency may never make a formal declaration of approval for it.
- The intended date for the listing is Monday, according to the new filing, but that does not necessarily imply it will begin trading on that day. This could happen later this week.
Bloomberg reported late Thursday that the Securities and Exchange Commission will allow the first US bitcoin futures exchange-traded fund to begin trading next week.
The SEC is unlikely to prevent such goods from beginning to trade, the news outlet reported, citing sources familiar with the situation.
The SEC is expected to make a decision in October on whether to approve, refuse, or delay four proposed bitcoin ETFs. The companies involved - ProShares, Valkyrie Investments, Invesco, and VanEck are all examples of exchange-traded funds are among several applicants waiting for word.
ProShares and Invesco's applications are based on futures contracts and filed under a 1940 legislation that provides "substantial investor protection" for mutual funds and ETFs, according to SEC Chairman Gary Gensler.
While Gensler has expressed reservations about pure bitcoin ETFs, he has expressed optimism about ones based on bitcoin futures contracts.
The SEC's approval would be "a watershed moment for the crypto community, as they have been waiting for this since 2018," according to Naeem Aslam, chief market analyst at Avatrade.
"You can see the reflection of this optimism in the bitcoin price, which is only 7% away from its all-time high."
On Friday, Bitcoin broke through $60,000 for the first time since April, before settling at roughly $59,440. In anticipation of ETF certification, its price has been rising in recent days, with many anticipating it to reclaim April's record high of $64,895 by the end of the year.
Fidelity, WisdomTree, Wilshire Pheonix, VanEck, First Trust SkyBridge, and Valkyrie, as well as ProShares and Invesco, are among the companies waiting for the SEC to make a judgement on a crypto ETF.
As investors seek exposure to the price of the digital asset in their traditional brokerage and retirement accounts, whichever fund receives early approval could enjoy a huge first-mover advantage.
Tyler and Cameron Winklevoss were the first to attempt, but failed, to establish a bitcoin futures ETF in the United States in 2013. Crypto ETFs were approved in Canada and Europe this year.
Given recent developments, there has been growing speculation that a bitcoin futures ETF is on the horizon.
Cathie Wood's Ark Invest has lent its name to an ETF that was registered with the Securities and Exchange Commission on Wednesday by issuer Alpha Architect. The symbol ARKA for the ARK 21Shares Bitcoin Futures Strategy ETF is a positive sign of forthcoming regulatory approval, according to an analyst.
Another positive signal, according to some investors, is a tweet from the Securities and Exchange Commission. On Thursday, the regulator's investor education division shared a link to a June alert warning against crypto funds.
"Make sure you properly assess the potential risks and advantages before investing in a fund that owns bitcoin futures contracts," the tweet read.
Volt Equity's ETF, which tracks stocks with significant exposure to bitcoin and is viewed as the closest fund to a bitcoin ETF so far, was authorized by the SEC last week.