Futures-based Bitcoin ETF has a ‘75% chance of approval’ in October. According to Bloomberg’s Eric Balchunas, while the SEC “kicks the can” on regular Bitcoin ETFs, the Bitcoin futures counterpart is poised for approval.
This month, a Bitcoin (BTC) exchange-traded fund (ETF) has a 75% probability of acquiring authorization.
Eric Balchunas, a senior ETF analyst for Bloomberg, said this weekend that US Bitcoin futures ETFs were “likely on pace” for regulatory approval.
Bitcoin futures ETFs “very much alive”
The Securities and Exchange Commission (SEC) announced an irritating, but not unusual, delay in its judgement on whether or not to approve Bitcoin ETFs at the start of October.
The different petitions will now be subject to revision in November, rather than receiving approval or refusal this month.
Futures-based ETFs, on the other hand, are expectable to pass test in the coming weeks, according to Balchunas.
He informed his Twitter followers, “Yes, the SEC has kicked the can on bitcoin ETF approval. BUT that is for the physically-backed ones under the ’33 Act”.
“The futures ETFs filed under the ’40 Act (which Genz adores) are very much alive. And well (we estimate a 75% probability of approval in October).”
Balchunas was referring to SEC head Garry Gensler, who hinted at a lenient attitude on the instruments last week.
In closing remarks at the Future of Asset Management North America Conference, he remarked, “We’ve started to see filings under the Investment Company Act with relation to exchange-traded funds (ETFs) wanting to participate in CME-traded bitcoin futures”.
“The ’40 Act, when coupled with other federal securities regulations, provides considerable investor protections for mutual funds and ETFs. I eagerly await the evaluation of such documents by the staff.”
Canada’s purpose Bitcoin ETF, which the Canadian authorities approved at the start of the year, beating out US offers, is continuing to grow in popularity.
A long and winding ETF road
The history of Bitcoin ETFs now spans many years. With various make-or-break occasions when proponents were almost confident the SEC would approve them.
Initially, speculations around such occurrences may cause considerable price movement in BTC, but this influence has faded over time.
Bitcoin futures received approval in December 2017. Just in time for Bitcoin’s run-up to all-time highs of $20,000 in the final days of the year.