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Fund manager ProShares has reportedly received permission from the SEC to launch a US-based Bitcoin futures ETF tomorrow.
Asset managers ProShares is ready to launch an eagerly-anticipated Bitcoin futures ETF on the New York Stock Exchange (NYSE) tomorrow morning. The ETF, which comes after the SEC began permitting US ETFs, will grant investors exposure to Bitcoin. This exposure is only limited to betting on the price swings of underlying assets without necessarily owning them outright.
ProShares CEO Michael Sapir acknowledges this development as a watershed moment for the crypto industry. In his words, “2021 will be remembered for this milestone.” For about eight years now, the SEC vetoed any attempts by fund management companies to launch ETFs in the US. However, Monday’s turning point will most likely spark a steady stream of similar instruments gaining regulatory approval. This, in turn, would expedite mainstream adoption and investment in digital currencies.
Sapir suggested that the BTC market lacked a single, reliable market reference. He further stated that prices could vary up to 5% across several crypto exchanges. Although, several analysts deem the Chicago exchange’s futures prices as most reflective of BTC market sentiment.
Another influential voice in this development also weighed in. Douglas Yones, the NYSE’s head of exchange-traded products, intimated to DealBook that “this is an exciting step but not the last.” Furthermore, Yones predicted that several more crypto ETF hopefuls would eventually win approval also. As of press time, the SEC has yet to make an official announcement. However, both ProShares and the NYSE have confirmed it to DealBook.
SEC Chair Gary Gensler previously suggested that funds linked to the futures market were more likely to get regulatory approval. In addition, ProShares’ ETF ties directly to Bitcoin futures traded on the Chicago Mercantile Exchange.
First US Bitcoin Futures ETF Comes As General Crypto Prices Are Generating Great Returns
Crypto has hit several key milestones on its way to mainstream and institutional adoption. Earlier in the year, American powerhouse exchange Coinbase went public for the first time. Furthermore, a substantial number of leading financial institutions, such as JPMorgan, began incorporating crypto investments for clients. Furthermore, large prominent business organizations began accepting digital currencies as forms of payment for goods and services rendered. Even though the crypto craze shows no signs of letting up, critics and some key regulatory voices are calling for caution. Institutional authority figures like SEC Chair Gary Gensler, and Bank of England Deputy Governor Jon Cunliffe, advocate for proper crypto oversight. The former even went as far as lobbying the US Congress to grant his agency more regulatory authority over digital assets. The latter, recently disclosed that without proper supervision, crypto might lead to a mass financial meltdown like that of 2008.
Bitcoin price is rapidly closing in on its previous record-high of $65K. The leading crypto has been blazing upward over the last several days, partly because of the anticipated ETF launch. Bitcoin first crossed the $62K-threshold on Friday last week, and picked up from where it left off early this week. In addition to this, other digital currencies are also seeing relative gains. Ethereum, the second-largest crypto by market cap, Solana, Cardano, and Dogecoin all registered substantial gains.