On October 15, the quotes of the first cryptocurrency has exceed $60K for the first time in almost six months amid a Bloomberg report on the approval of the launch of an exchange-traded fund (ETF) based on Bitcoin (BTC) futures next week.
Thus, at the time of writing, digital gold is trading at around $59,976. Therefore, over the past day, the asset has risen by 4.6%, according to CoinGecko.
Informed sources told Bloomberg that the U.S. Securities and Exchange Commission (SEC) is “unlikely to block” the launch of the tool. The agency named applications from ProShares and Invesco as the main favorites.
Earlier, Bloomberg senior ETF analyst Eric Balchunas called the update of the fund’s prospectus from Valkyrie Investments; and new ARK Invest application “good signs” for SEC approval of the first Bitcoin ETFs.
In August, the head of the SEC, Gary Gensler, said that the regulator would consider Bitcoin ETFs. If they were based on futures of the Chicago Mercantile Exchange (CME) and comply with the Investment Companies Act of 1940.
This was followed by a wave of filing documents for the registration of such funds from; Valkyrie Investments, VanEck, Invesco, ProShares, Galaxy Digital, AdvisorShares and BlockFi. Also, the proposed investment products do not provide for direct investments in cryptocurrency.
The SEC approval
According to the calculations of the analytical firm Arcane Research; at the beginning of October, applications for 12 spot Bitcoin ETFs and seven futures-based ones were under consideration by the SEC.
Recall that previously the SEC approved an ETF based on a basket of shares of Bitcoin-centric companies from Volt Equity. The tool does not provide direct access to digital gold.
Moreover, 80% of the assets under management (AUM) will form shares of organizations that hold BTC. In addition, in an interview with Decrypt, Volt Equity Chief Executive Officer and founder Ted Park said that the ETF will include about 30 companies, including Tesla, Twitter, Square, Coinbase and PayPal.