Bitcoin ETFs have been a hot topic of discussion in the crypto space recently. Rumors of approval have circulated in recent days and the SEC looks set to give its approval to its first ETF. There have been speculations as to which ETFs would get approved first, but it looks like the Valkyrie Bitcoin ETF has the highest chance of getting the first approval.
A Bloomberg article reported that the SEC was set to approve the first Bitcoin ETF in the United States, citing people who are familiar with the matter on this. It would seem after a drawn-out battle, the regulator has come to a conclusion regarding the trading of Bitcoin ETFs in the country.
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Bitcoin Futures EFT See High Chance Of Approval
There is still no definitive decision on the Bitcoin ETFs. Nevertheless, there has been information brought to light that suggests that Bitcoin Futures ETF are likely to be approved by the regulator. Filings like that of Proshares and Invesco Ltd. which were filed under mutual fund rules see a high chance of getting approved when the SEC is set to make its decision.
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This is because Bitcoin Futures ETFs are said to be safer to trade on for investors. The SEC is the regulatory body that makes sure investors’ money is protected and thus has to make sure that it approves only filings that will see to it that funds of investors are protected. SEC boss Gary Gensler said that Bitcoin Futures ETFs actually provide “significant investor protections” and this comment has participants in the crypto space believing the regulatory body will approve a Bitcoin Futures ETF.
BTC price breaks above $61K | Source: BTCUSD on TradingView.com
The SEC has been very cautious when it comes to approving trading vehicles in connection to cryptocurrencies. The lack of regulation in the space has drawn concern from the regulator about the safety of investor funds. However, with the growing popularity of the space, the SEC is forced to make a decision on the ETF filings which it has received.
Going Through Without A Hitch
According to people familiar with the matter, they claim that there will be no opposition to the Bitcoin Futures ETFs once the deadlines for the decisions arrive. Investors will be able to trade on the ETFs once approval goes through.
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The rumors surrounding the ETFs have had a great effect on the market. BTC price broke $60,000 for the first time in five months as speculations around an SEC approval grew. It has caused a ripple effect in the market which has seen altcoins rallying alongside the top cryptocurrency in the market.
There is still some time left before the SEC has to make a decision. But soon after the decision is made, Bitcoin ETF filings from VanEck and Valkyrie are nearing their deadline and the regulator will have to make a decision on these too.
Featured image from Premium Times Nigeria, chart from TradingView.com