In the US, various mutual funds have applied for Bitcoin ETFs. The number has increased as interest in crypto has increased over the past few months. Some countries have so far approved some crypto ETFs and investors can trade these. However, the United States has yet to see approval of its very first Bitcoin ETF.
Speculation about the approval of a Bitcoin ETF has increased lately. The Securities and Exchange Commission (SEC) was expected to make a decision on various submitted Bitcoin ETFs. But the regulator had postponed the date. In VanEck’s case, it will be postponed by 60 days until the SEC makes its decision on the Bitcoin ETF.
SEC chief clarifies stance on crypto
After SEC chairman Gary Gensler announced that the regulator had no intention of banning Bitcoin in the US, investors soon began to expect a Bitcoin ETF to be approved. The reason for this was that the Chairman would not do everything possible to provide such information if there was no good news in the future.
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The country’s first Bitcoin ETF is expected to be approved in October, which would allow investors to start trading Bitcoin futures ETFs. Instead of having to trade Canadian crypto ETFs.
In addition to the SEC’s stance on crypto regulation, a Canadian mutual fund with the same language as a Bitcoin ETF had previously been approved by the regulation. This was brought up by asset manager James Seyffart, who believes that since this mutual fund was approved, the SEC would most likely approve an ETF with similar wording.
Bitcoin ETFs are nearing approval
Eric Balchunas, a Bloomberg ETF analyst, took to Twitter to point out some events that could indicate the first Bitcoin ETF is about to be approved. The analyst pointed out that Valkyrie, a digital wealth management company, updated their Bitcoin Futures ETF prospectus.
NOTABLE: Valkyrie just updated their Bitcoin Futures ETF prospectus (which usually only happens when the ranks get ready to launch). They added their ticker, $ BTF, although a fee has not yet been charged. Can’t say this is deal type evidence but a good sign IMO. pic.twitter.com/GlQo4C1lBc
– Eric Balchunas (@EricBalchunas) October 13, 2021
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Updates to ETFs are not an everyday thing. An update of a prospectus is only required when regulatory authorities are close to approval and the company needs to ensure that the document contains the correct information. In addition to this update, Valkyrie had also added her ticker ($ BTF) to the document.
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Balchunas notes that while this is a good sign, it does not mean that a Bitcoin ETF will be approved. If anything, it means that the companies that have filed these ETFs are moving in the right direction to get approval. However, every launch is usually preceded by an update. “That happens just before a launch, they fill in all the XXs and add tickers,” said the analyst.
Featured image from Coingape, chart from TradingView.com