The first Bitcoin ETF in the United States
It finally happened. After more than 8 years of advocacy from the crypto industry, the Securities and Exchange Commission (SEC) has given the green light to a Bitcoin (BTC) exchange-traded fund (ETF).
These funds more commonly known in English Exchange Traded Funds correspond to index funds whose units can be sold or bought directly on the stock exchange. An ETF offers investors the ability to access the BTC market through a traditional brokerage account, without the possible technical barriers to entry or the risks of directly holding or transferring BTC.
The Bitcoin futures-based company ProShares ETF is expected to be listed as early as Monday if no last-minute regulatory intervention occurs.
The company has filed an amended prospectus indicating its intention to launch the fund on October 18 under the ticker BITO. The validation of an ETF based on Bitcoin in the United States had been awaited for several years by the players in the sector.
An ETF based on futures
The US regulator has authorized the creation of a Bitcoin ETF, however, it is not a fund indexed to the price of Bitcoin, as most players wanted. Instead, the agency authorized an ETF on BTC futures contracts.
This means that the new fund, offered by ProShares, will not give guaranteed stocks, but stocks linked to a set of Bitcoin purchase contracts in the future.
SEC Chairman Gary Gensler said he believes futures offer better protection for investors because of the laws that govern them.
Further ETF applications, this time based on the spot market, are under consideration by the SEC. The regulator recently postponed its decision for management firm VanEck’s Bitcoin ETF to November 14. In its previous rejections, the SEC has always cited fears of manipulation in the Bitcoin spot market.
👉 To read on the same subject: Bitcoin (BTC) once again exceeds $ 60,000, as the SEC prepares to approve ETFs
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About the author: Florent David
Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFTs).
All articles by Florent David.