Why We Could See The First Approved U.S. Bitcoin ETF In October
October 14 2021 - 06:00PM
NEWSBTC
Various investment funds have applied for Bitcoin ETFs in the U.S.
The number has grown as interest in crypto has been on the rise in
recent months. A couple of countries so far have approved some
crypto ETFs and investors can trade on these. However, the United
States is yet to see the approval of its very first bitcoin ETF.
Speculations around the approval of a bitcoin ETF have been on the
rise lately. The Securities and Exchange Commission (SEC) was
expected to make a ruling on various Bitcoin ETFs that had been
filed. But the regulator had moved up the date. In the case of
VanEck, moving it by 60 days until the SEC would provide its
decision on the Bitcoin ETF. SEC Boss Clarifies Stance On Crypto
After SEC Chairman Gary Gensler announced that the regulatory body
had no intention of banning bitcoin in the United States, investors
began to expect the approval of a bitcoin ETF soon. The reasoning
behind this being that the chairman would not go out of his way to
provide information like this if there wasn’t good news in the
future. Related Reading | Number Of Bitcoin Active Entities
Grows 19% To Hit 2020 Bull Levels, Set Up For New Highs? It is
expected that October will see the approval of the first bitcoin
ETF in the country, which would enable investors to begin trading
on Bitcoin Futures ETFs. Instead of having to trade on 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
been previously approved by the regulation. This was put forward by
asset manager James Seyffart, who believes that since the SEC had
approved this mutual fund, then it would most likely approve an ETF
that consisted of similar wording. Bitcoin ETFs Getting Closer To
Approval Eric Balchunas, an ETF analyst for Bloomberg, took to
Twitter to point out some events that may signal that the first
bitcoin ETF is close to being approved. The analyst pointed out
that Valkyrie, a digital asset management firm, had updated their
Bitcoin Futures ETF prospectus. NOTABLE: Valkyrie just updated
their bitcoin futures ETF prospectus (which typically only happens
when ducks in row ready for launch). They added their ticker $BTF,
altho no fee still. Can't say this is done deal type evidence but a
good sign IMO. pic.twitter.com/GlQo4C1lBc — Eric Balchunas
(@EricBalchunas) October 13, 2021 BTC breaks above $57K again |
Source: BTCUSD on TradingView.com Now, updates to ETFs are not a
mundane thing. An update to a prospectus is only required when the
regulators are close to approving it and the firm needs to make
sure that the document contains the correct information. In
addition to this update, Valkyrie had also updated added their
ticker ($BTF) to the document. Related Reading | Bitcoin
Whales Accumulation Patterns Shows Strong Bullish Sentiment Among
Top Holders Balchunas notes that while this is a good sign, it does
not mean that a bitcoin ETF is going to be approved. If anything,
it means that the firms who submitted these ETFs are moving in the
right direction towards getting approval. However, every launch is
usually preceded by an update. “That’s what happens right before a
launch, they fill in all the XXs and add ticker,” said the analyst.
Featured image from Coingape, chart from TradingView.com
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