Historic moment: Bitcoin ETF will be approved by the US SEC

Since Bitcoin’s first rapid rise in 2017 , the market has been trying to bring cryptocurrencies to Wall Street. Of course, most of these efforts have been in vain-this is due to weakening demand during economic downturns, opposition from government entities, or general uncertainty surrounding the future of cryptocurrencies as an asset class. But now, as Bitcoin is recognized by the public, institutions and even countries such as El Salvador, times are quietly changing.

ProShares’ Bitcoin ETF will be approved by the U.S. Securities and Exchange Commission

According to people familiar with the matter, the US Securities and Exchange Commission is preparing to allow the first US Bitcoin futures exchange-traded fund to start trading.

People familiar with the matter who requested anonymity said that the SEC is unlikely to block the approval of the Bitcoin ETF. Because this is different from the Bitcoin ETF application previously rejected by the regulator, ProShares and Invesco Ltd.’s proposal is based on a futures contract and is submitted in accordance with the mutual fund rules that SEC Chairman Gary Gensler said provides “important investor protection”. 

Historic moment: Bitcoin ETF will be approved by the US SEC

Why it is said that Bitcoin futures EFT is highly likely to be approved

Although there is still no clear decision on the Bitcoin ETF, there is a high possibility that the Bitcoin futures ETF will be approved by the regulatory agency this time.

This is because Bitcoin futures ETFs are safer for investors. The US Securities and Exchange Commission is the regulatory agency that ensures that investor funds are protected, so it must ensure that it only approves documents that will ensure that investor funds are protected. SEC Chairman Gary Gensler stated that Bitcoin futures ETFs actually provide “important investor protection.” This comment convinced investors in the crypto sector that regulators would approve Bitcoin futures ETFs.

The US Securities and Exchange Commission has always been very cautious when approving trading instruments related to cryptocurrencies. The lack of supervision in this area has caused regulators to worry about the safety of investors’ funds. However, with the increasing popularity of this field, the US Securities and Exchange Commission will have to make a decision on the ETF documents it receives.

Historic moment: Bitcoin ETF will be approved by the US SEC

According to people familiar with the matter, once the Bitcoin ETF documents submitted by VanEck and Valkyrie are about to close, the regulator will have to make a decision on this. Once approved, investors will be able to trade on the ETF.

There is no doubt that this is a historic moment in the field of cryptocurrency. As a legal scheme for directly holding digital assets, exchange-traded funds will mean an influx of funds from retail and institutional investors.

The difference between ProShares’ Bitcoin ETF  and  Grayscale ‘s G BTC

The functions of ProShares’ Bitcoin ETF are similar to those of Grayscale’s GBTC. The difference is that the ETF will track Bitcoin futures instead of directly tracking the price of digital assets. SEC Chairman Gary Gensler said that since strict securities laws must be observed, all products passed in the future will be aimed at protecting investors. 

As a futures-based product, there may be a potential premium or discount relative to the net asset value (NAV). However, the management fee of Proshares’ ETF is 0.95%, which is much lower than GBTC’s 2%. This, coupled with the strict redemption period of GBTC and the deviation from the net asset value, will lead to a large inflow of funds from GBTC to ProShares ETFs. 

A price that lives up to expectations

The above news keeps the price of BTC continuing to rise, and BTC is close to its historical high of US$63,000. This morning, the price of BTC reached a peak of $62,600. As of press time, the price of BTC is $61,300-an increase of 6.36% in the past 24 hours alone.

Historic moment: Bitcoin ETF will be approved by the US SEC

According to CoinMarketCap data, mainstream coins have returned to their $1 trillion market value. Ethereum and other mainstream currencies have responded positively to this news and have approached their respective historical highs.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/historic-moment-bitcoin-etf-will-be-approved-by-the-us-sec/
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