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The latest Bloomberg report suggests that there will be no opposition by the US SEC in approving the upcoming Bitcoin futures ETF.
The anticipation that the US Securities and Exchange Commission (SEC) will soon provide its approval for a Bitcoin ETF is getting stronger every passing day. Putting further confidence, the latest Bloomberg report suggests that the SEC won’t pose any resistance to the upcoming Bitcoin futures ETF.
The suspicion was on the rise after the investor education platform by the SEC twitter regarding Bitcoin futures. The tweet notes:
Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.
Check out our Investor Bulletin to learn more: https://t.co/AZbrkpfn8F
— SEC Investor Ed (@SEC_Investor_Ed) October 14, 2021
Soon after, Bloomberg released its report cementing the market belief. The Bloomberg report stated:
“The regulator isn’t likely to block the products from starting to trade next week, said the people, who asked not to be named while discussing the decision. Unlike Bitcoin ETF applications that the regulator has previously rejected, the proposals by ProShares and Invesco Ltd. are based on futures contracts and were filed under mutual fund rules that SEC Chairman Gary Gensler has said provide significant investor protections.”
This news was enough to trigger an upward move in the Bitcoin price. The BTC price has surged another 3% in the last 24 hours moving past $59,000 levels. As of press time, Bitcoin is trading at $59,285 with a market cap of $1.11 trillion.
It is for the first time in the last five months that Bitcoin has reached so much close to $60,000. The approval of the Bitcoin ETF by the U.S. SEC can possibly trigger a major rally for Bitcoin. This seems to be the beginning of the “Bitcoin season” as witnessed previously in 2017.
What Can Happen after the Bitcoin ETF Approval?
In the past, the US SEC has rejected multiple Bitcoin ETF proposals tracking the underlying asset. However, SEC Chairman Gary Gensler recently showed the willingness to approve an ETF tracking Bitcoin futures. Many financial players then started filing for the Bitcoin futures ETF product.
Popular crypto analyst Mati Greenspan recently spoke on these developments happening in the crypto space. The analyst said that more institutions have been getting involved with Bitcoin as well as the approval of the Bitcoin ETF. Besides, they are also working closely with the regulators and making people understand how crypto can help overcome wealth inequality.
Thus, if the SEC approves the Bitcoin ETF, there will be a massive liquidity influx in Bitcoin causing the price to skyrocket further.