Key Takeaways:
- At least two applications for Bitcoin ETF products will be reviewed from the SEC next week
- SEC Chairman Gary Gensler has raised the prospects for a Bitcoin ETF approval
Two Bitcoin ETFs In the Queue for Approval by the SEC
Two Bitcoin exchange-traded funds (ETFs) are slated for final review from the Securities and Exchange Commission next week. The SEC, headed by Chairman Gary Gensler, is the regulatory body that has the authority to regulate financial firms and their operations. Besides, the agency oversees investment firms, including exchange-traded funds.
That being said, two Bitcoin ETFs, ProShares and Invesco, would next week have their applications either approved, rejected, or delayed. It’s worth noting that, this time around, the SEC Chairman has indicated tough but clear-cut measures for approving a Bitcoin exchange-traded fund.
On that note, after years of waiting and all applications so far rejected, expectations are high. Crypto enthusiasts are hopeful the first US ETF products with focus on crypto will arrive as soon as next week. For comparison, the first-ever filing for a Bitcoin ETF was made in 2013 by the Winklevoss twins, two bitcoin veterans.
What’s Behind an ETF with Focus on Bitcoin?
In more detail, the two Bitcoin ETFs will offer Bitcoin futures rather than the cryptocurrency itself. That would mean investors who purchase these financial products will speculate with the price of Bitcoin, without owning the underlying asset. In other words, Bitcoin ETFs would present a route for institutions to invest in products tracking the price of Bitcoin without holding Bitcoin.
Presently, this is one of the few ways for traditional investment firms to dive into crypto. This is because the SEC has not yet announced regulations that would guard institutional crypto investors. Moreover, banks cannot offer direct access to Bitcoin until regulations arrive.
Against that backdrop, the two filings for Bitcoin ETF products could further pave the way for a broader cryptocurrency adoption.
Optimistic Outlook for Cryptocurrencies
Analysts are optimistic about the outlook for crypto if the SEC approves the first US Bitcoin ETF. Furthermore, if the agency gives the go-ahead for an ETF with exposure to Bitcoin, this would open the doors pent-up demand from institutions.
In turn, this would allow the crypto market to keep growing and attracting new participants. In the meantime, newcomers who would like to learn more about Bitcoin and how to invest are welcome to do so with our comprehensive guidance.