SEC is Ready To Approve Trading of First Bitcoin Futures ETF

Securities and Exchange Commission has a bit of reputation when it comes to approving any and every ETF ever proposed to the commission. There have been more than 100 filings in this year alone, and the Securities and Exchange Commission have turned each and everyone down. The reason why this behaviour is consistent by the commission remains unknown, but it has something to do with devaluation and volatility, which the crypto market so strongly proposes.

It can be seen as a concern that no one would want to approve an exchange-traded fund which is based on volatility as it has to do with the investment of people, pouring their money into some fund that is not going to yield anything in the future but could plummet is not something that is usually up for consideration. But there have been talks that SEC might finally approve the first ETF regarding Bitcoin in the upcoming week, or so the Bloomberg reports.

SEC and Bitcoin Futures ETF

This is not in any capacity an official statement by the Commission itself; it is just a report hinting at the predictability of and ETF approval by the SEC. Mainly four firms have filed the application for a Bitcoin futures ETF and in the upcoming week, SEC is due to present its decision on these applications. If the fund gets approved, then it will be regulated under the future investment Company Act of 1940, which will be tracking the Bitcoin futures market. ETFs are the investment products that track the current market value of an underlying asset; SEC back in the day has rejected many Bitcoin ETF applications over concerns that the volatility factor is too strong to be advocated by the Commission to the investors as a vibrant opportunity for an investment fund.

No one knows what the end game is with these ETFs that are currently being monitored and evaluated by the Securities and Exchange Commission. Maybe there would be a legal framework that would allow investors to work hand in hand with the crypto market, and these ETFs will be closely regulated by the Commission itself. It is too early to comment on this, and only time will tell if SEC is going to change its attitude towards exchange-traded funds regarding Bitcoin or any other crypto for that matter.

By Howard Ford
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