The first Bitcoin futures ETF approved for listing on Nasdaq: BTC rose by over US$62,000

On October 15, the Nasdaq official website showed that the ProShares Bitcoin futures ETF , which has been approved by the Bitcoin Strategy ETF, will be listed on the NYSE Arca exchange under the symbol BITO. However, in accordance with the process, after the Nasdaq is approved, it must be approved by the US Securities and Exchange Commission (SEC). On the 16th, according to CoinDesk, the US SEC had approved the Bitcoin futures ETF on the 15th.

This is the first Bitcoin futures ETF approved for listing in the United States. According to foreign media reports, if everything goes well, it will start trading on the NYSE Arca exchange as early as next week, with a management fee of 0.95%.

8 years looking forward to realizing the dream

Proshares is an American ETF giant. Its Bitcoin futures ETF was approved as the first in the United States and is expected to be traded next week, directly inspiring the enthusiasm of the crypto market that has been silent for many months. This week, Bitcoin has soared up to more than 62,000 US dollars, and other currencies in the market have also risen.

However, what needs to be distinguished is that, according to the previous report of China Times, on October 5, the SEC has approved the ETF application submitted by Volt Equity. Company”, this is the first Bitcoin-related ETF product approved by the United States. The ETF does not directly hold any cryptocurrency. It is composed of approximately 30 shares of crypto-asset-related companies, including MicroStrategy and Tesla. , Square, Coinbase , PayPal and other companies that hold a large amount of Bitcoin or part of their income from Bitcoin mining, loans or transactions.

Since 2013, the Winklevoss brothers, the founders of Gemini Exchange, submitted their application to the US SEC for the first time, and they have experienced 8 years of gaming with regulation. As of this approval, the U.S. SEC has rejected applications for Bitcoin ETF more than a dozen times, including Grayscale or SkyBridge Capital, the largest crypto asset management company in the U.S., regardless of whether the portfolio includes U.S. Treasuries or crypto assets. Low ETFs are all rejected by the SEC, or the Securities Regulatory Commission, or recommended to withdraw their applications. The reasons for rejection are mostly due to the aforementioned “market operations, fraud, and difficulty in protecting investors and public interests”.

Before this passage, Gensler, the chairman of the US Securities Regulatory Commission, gave a signal at the Aspen Forum in August. He made it clear: “I very much hope that my colleagues will review the ETF based on CME Bitcoin futures.” Bitcoin futures ETFs, not spot ETFs, may also reflect this signal. According to foreign media reports, many SEC officials are also buying bitcoins, looking forward to the arrival of ETFs.

Prior to the approval of the Bitcoin ETF in the United States, there were already Bitcoin ETFs approved for listing and trading in Canada, Brazil and Dubai, such as the world’s first Bitcoin ETF, the Purpose Bitcoin ETF in North America. After the approval, some Bitcoin ETFs that are applying for this year may be expected to continue to pass the application.

According to OKLink data, the current Purpose Bitcoin ETF holds US$ 1.226 billion, the CI Galaxy Bitcoin ETF holds more than US$217 million, the Purpose ETH ETF holds approximately US$739 million, and the Evolve Bitcoin ETF holds more than US$205 million.

How is the Bitcoin futures ETF market developing?

What is the market outlook for the Bitcoin futures ETF passed this time?

Market analyst Tara analyzed to reporters that it may be possible to predict the digital gold Bitcoin ETF from the trajectory after the gold ETF is approved. In 2003, Australia approved the first gold ETF. In October 2004, the SEC approved GLD, the first gold ETF in the United States, and began trading in November of that year. This is very similar to the Bitcoin ETF.

“According to the trend of gold, the gold ETF rose more than 70% two years before it was approved to the approval; one month after the approval, the market fell by about 10%, and the market continued to fluctuate. However, so far, gold has appeared. Many rounds of bull market have risen by more than 300% so far. In contrast, the approval of Bitcoin ETF seems to be following the old path of the gold market.” Tara said.

After the Bitcoin ETF is approved for listing and trading, in addition to the compliance effect, a large amount of funds may influx to push up the price of Bitcoin and stimulate the bull market in the crypto market.

However, Tara warned that Bitcoin futures ETFs may squeeze out the demand for Bitcoin spot, causing downward pressure. After the listing of Bitcoin futures ETFs, the hype of the crypto market is no longer limited to the limit of 24 million Bitcoins. In addition, the Bitcoin futures ETF will increase the cost of traders, and the futures market may be manipulated by the spot market.

On October 8, Bloomberg published an article “Wall Street Expects Four Bitcoin Futures ETFs to Be Seen at the End of the Month” stating: “After years of long waiting, insiders can finally see four Bitcoin ETF products in the United States within a few weeks. Batch.”

The BTC Investment Trust in early 2021, the VanEck Bitcoin Strategy ETF in the middle of the year, and the Valkyrie Bitcoin Strategy ETF and Galaxy Bitcoin Strategy ETF in recent days are still under review and are expected to be approved.

Bloomberg pointed out that the first ETF passed will anchor Bitcoin futures and provide strong investor protection measures in accordance with the Investment Company Act of 1940. Perhaps the first one to be approved is ProShares, which is the first to propose the concept of Bitcoin futures ETF. A week later, Valkyrie Investments will also be approved.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Leave a Reply