SEC will allow ProShares to start trading its BTC futures ETF starting on Monday, after denying and delaying dozens of applications over the past four years so let’s read more in our latest Bitcoin news today.
The US Securities and Exchange Commission gave its approval for the first Bitcoin ETF. ProShares filed a prospectus on Friday and indicated that it has recieved the green light for its Bitcoin Strategy ETF to start trading on Monday. The company’s ETF is tied to BTC futures contracts rather than directly to the price of Bitcoin but its approval still represents a huge landmark moment for the entire industry. After delaying and ignoring dozens of applications, now ProShares is the chosen one that will trade a Bitcoin Futures ETF as the SEC will allow it.
The company’s ETF is tied to Bitcoin’s futures contracts and not the price of bitcoin. ETFs are an investment product that tracks the price of stocks, commodities, or other assets, and they are traded on a public exchange like stocks. They are a great choice for people that are about to retire and have a savings plan for people that could otherwise shy away from the difficulties of buying crypto on exchanges like Coinbase.
Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.
Check out our Investor Bulletin to learn more: https://t.co/AZbrkpfn8F
— SEC Investor Ed (@SEC_Investor_Ed) October 14, 2021
A real Bitcoin ETF will follow the actual price of BTC and has to be approved in the US so companies hoping for an ETF started pivoting to futures-backed ETF proposals after the sEC Chair Gary Gensler suggested that they will have an easier path towards approval. The growing number of companies that await approval are slowly starting to get optimistic. Mike Novogratz’s Galaxy Digital and Cathie Wood’s Ark Invest are one of them. By the end of October, two other futures ETFs could be on the market as the SEC faces more deadlines to approve the offerings from Valkyrie and VanEck. The agency also showed its intentions when one of the social media accounts tweeted an investor bulletin that covered BTC futures trading:
“Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.”
As recently reported, The SEC approves BTC ETF with a portfolio that includes 30 companies including PayPal and Tesla. The approval came as the crypto space was strongly demanding approval from the SEC. The community waited for a long time for the Securities and Exchange Commission to approve a Bitcoin ETF so now the agency took a step in the right direction by approving a fund called “Volt Bitcoin Revolution ETF.”
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