Will the SEC approve the first Bitcoin ETF in October?
Will the SEC approve the first Bitcoin ETF in October?
Bitcoin

Will the SEC approve the first Bitcoin ETF in October?

By Vincenzo Cacioppoli - 31 Aug 2021

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The SEC is reportedly preparing to give the green light to the first Bitcoin ETF in the US

There are differing opinions

At least that’s what Bloomberg analyst Eric Balchunas says, predicting that by October, the US Securities and Exchange Commission could approve an ETF submitted by investment firm Proshares.

According to other authoritative sources, however, it is highly unlikely that the SEC will make such a move, considering that so far it has not given the go-ahead to any of the 20 or so ETFs submitted.

According to Karen Smith of the Blockchain Association, until SEC Chairman Gary Gensler sees some kind of regulatory regime in place, it is unlikely that a Bitcoin ETF will be approved in the country. 

Winklevoss twins first to file Bitcoin ETF with SEC

It’s been eight years since the Winklevoss twins first sought approval with the Securities Exchange Commission (SEC) for a new exchange-traded fund for Bitcoin, when the currency was selling for less than $100.

Since then, Bitcoin’s price has fluctuated up and down, reaching as high as $60,000 at one point earlier this year, and more than 15 asset managers have come on board with their own documents, none of which received the green light from the US securities regulator. 

Bloomberg Intelligence analyst James Seyffart has tracked more than 35 attempts in America since 2013, most of which have been delayed or denied.

Now, however, we seem to be seeing an acceleration by investment companies to file ETFs with the SEC.

In fact, over the past two weeks, in addition to ProShares, Invesco Ltd., VanEck, Valkyrie Digital Assets and Galaxy Digital have all filed plans for Bitcoin futures ETFs.

SEC Chairman speaks openly about a possible upcoming Bitcoin ETF

In early August, Securities and Exchange Commission Chairman Gary Gensler indicated that he would be receptive to ETFs that trade Bitcoin futures rather than cryptocurrencies themselves, as long as they follow stricter rules usually reserved for mutual funds.

The SEC has already approved the first US Bitcoin-based mutual fund, which began trading last month.

Speaking at the Aspen Security Forum, Gensler said issuers structuring ETFs under the Investment Company Act of 1940 would help protect investors from illicit activities. 

The decades-old law is a stricter set of guidelines that typically apply to mutual funds. For example, it requires independent advice and gives a fund the ability to stop accepting new money, which most ETFs cannot do.

Brazil and Canada have already approved the first ETFs

Last March, Brazil’s Securities and Exchange Commission had approved a Hashdex ETF, which offers exposure to a variety of cryptocurrencies. 

In February, Purpose Investments launched Canada’s first bitcoin ETF on the Toronto Stock Exchange, reaching $1 billion (CAD) after only a few weeks on the market.

Since then, Evolve’s Bitcoin ETF (EBIT), The CI Galaxy Bitcoin ETF (BTCX) and 3iQ CoinShares ETF (BTCQ) have also been launched in Canada.

 

Vincenzo Cacioppoli

Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.

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