The first U.S. Bitcoin Futures ETF is officially confirmed
A post-effective amended prospectus was filed with Securities and Exchange Commission by ProShare, an American provider of specialized exchange-traded products.
The document is considered a confirmation of the favorable decision by the SEC. No formal announcement by the SEC is needed under U.S. federal law, which allows an application to become effective.
The news qualified by many as a victory for Bitcoin will make the Bitcoin Futures ETF a reality. Friday, October 15th saw Bitcoin surging to $63,000 following rumors of such an approval. This is the highest price we have seen since the all-time high of $64,863 on April 14, 2021.
According to comments from SEC Chairman Gary Gensler, as well as preparations by investment firms that have applied for authorization to trade bitcoin ETFs, exchange-traded funds indexed to cryptocurrency, would indicate that an approval will be soon to be announced. If this authorization were to be pronounced, four bitcoin ETF funds could begin their activities during this month of October, indicates Bloomberg.
The news regarding the approval by the SEC of a bitcoin futures ETF came with a wind of enthusiasm and optimism across the crypto scene. Many experts considering it as a bullish announcement that will bring more interest in this highly speculative digital asset among high-class investors. Bitcoin Futures ETFs will allow accredited and retail investors to have some exposure to the bitcoin price. This is the first time the SEC built a consumer-friendly product to provides exposure to cryptocurrencies.
However, other experts argue that the approval of a Bitcoin Future ETF without a Bitcoin Spot ETF is only meant to suppress the price of Bitcoin.
Bitcoin Futures ETFs are not what people think they are. These ETF products that will be launched are going to track the bitcoin price, but they are not backed by real Bitcoins. They are backed by futures contracts that are purely paper products. According to many experts, it won’t set the demand expected by many.
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