Bitcoin ETF Set for Approval By SEC On 18 October
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A Bitcoin ETF approval by the US Securities and Exchange Commission (SEC) say may be imminent according to reports, with the ProShares Bitcoin Strategy ETF likely to be the first out of the door.
If approved, the ProShares product would be the first bitcoin ETF to trade in the US, although it would be based on CME bitcoin futures as opposed to”physical” bitcoin.
The CME bitcoin futures contract is currently trading at a 15% premium to the spot price as traders bet the approval of a bitcoin ETF will add to bullish sentiment around the leading cryptocurrency.
Bitcoin Futures ETF would have “significant investor protections”
The SEC chairman Gary Gensler is on record as favouring the futures route for a bitcoin ETF because it provides investors with “significant investor protections”, and in that regard differs from previously rejected applications. CME bitcoin futures are regulated by the 1940 securities law.
The first attempt to get a bitcoin ETF approved was in 2013 , brought forward by crypto supporters, the Winklevoss twins Cameron and Tyler and founders of the Gemini exchange.
The long battle for approval has previously failed because of the regulators’s concerns about the price volatility of a bitcoin ETF, the weakness of price manipulation and discovery, plus the lack of supervision of trading venues and security concerns around custody.
ETF hopes pushes BTC above $59,000
Bitcoin is currently trading at $59,766 as it closes in on its all time high of $64k touched in April this year, with the expectation of an ETF approval adding to momentum for buying cryptocurrency.
Although Gensler has pushed hard on the need for regulation of the crypto industry. As the person who established the crypto program at MIT’s Sloan School of Management, he has a deep understanding of the asset class and was considered to be favourably disposed towards the sector because of this, prior to his appointment as SEC chairman.
There are nine bitcoin ETF products awaiting approval from the SEC.
Bloomberg Intelligence reckons that the most likely bitcoin ETFs to be approved are the ProShares product already mentioned, followed by the Valkyrie Bitcoin Strategy ETF (BTF) and the Invesco Bitcoin Strategy ETF.
| Filing | Potential Approval Date | BI Odds of Getting Approved First | Has Canadian ETF Clause? |
| ProShares. Bitcoin Strategy ETF | Oct 18, 21 | 2-1 | Yes |
| Valkyrie Bitcoin Strategy ETF (BTF) | Oct 25, 2021 | 4-1 | No |
| Invesco Bitcoin Strategy ETF | Oct 19, 2021 | 9-1 | Yes |
| Vaneck Bitcoin Strategy ETF | Oct 25, 21 | 20-1 | Yes |
| Galaxy Bitcoin Strategy ETF | Nov 1, 21 | 50-1 | Yes |
| Advisorshares Managed Bitcoin ETF | Nov 3, 21 | 50-1 | Yes |
| Bitwise Bitcoin Strategy Fund (BITC) | Nov 28, 21 | 100-1 | Yes |
| BlockFi Bitcoin Strategy Fund (BBBB) | Dec 22, 21 | 200-1 | No |
| Ark 21 Shares Bitcoin Futures Strategy ETF (ARKA) | Dec 27, 21 | 200-1 | No |
| Source: Bloomberg Intelligence | |||
