Bitcoin Futures: SEC chief's testimony sparks new wave of ETF filings

The wait for the approval of the first Bitcoin ETF knows no end. SEC boss Gary Gensler now hinted that Bitcoin ETFs would have a better chance of approval if they were based on Bitcoin futures. The reaction was not long in coming.

Traders and investors are eagerly awaiting the first Bitcoin ETF in the US. While applications to do so are just piling up at the Securities and Exchange Commission (SEC), financial services firms are looking for alternatives. Triggered by a remark by SEC Chairman Gary Gensler, there is now a real boom in ETFs based on Bitcoin futures. Futures are forward contracts in which trading partners agree to a specific deal at the current time. So such an ETF would not be based on the largest cryptocurrency itself.

Valkyrie Investments is now going out of its way to follow up its Bitcoin ETF filing with a Bitcoin Futures ETF. On Tuesday, a surprise Nasdaq regulatory filing revealed this plan. The application for the Valkyrie XBTO Bitcoin Futures Fund marks the second ETF proposal from the asset management firm, which filed an application with the SEC back in January.

So the fact that Valkyrie is now planning to use bitcoin futures for its second ETF filing with Nasdaq is likely no coincidence. Moreover, the asset management firm has a partner exchange on its hands in Nasdaq. That means the SEC can start reviewing the product. That puts Valkyrie closer than any other potential issuer to the day it decides on a bitcoin futures ETF.

Citigroup is also considering a bitcoin futures ETF

Among those issuers is US banking giant Citigroup. While Citigroup is still working on the necessary regulatory approvals, according to media reports, it would join fellow US big bank Goldman Sachs in trading bitcoin futures.

We are currently considering products such as futures for some of our institutional clients as they need to meet the stringent regulatory environment

, Coindesk quotes a Citigroup spokesperson. Gary Gensler’s statement now seems to be triggering a flurry of applications. According to Bloomberg , both ProShares and Invesco have also filed plans with the SEC for funds based on futures.

I look forward to the staff reviewing such applications, especially if they are limited to bitcoin futures traded on the CME

, Gensler let slip before the Aspen Security Forum on Tuesday. In January, the <a href=””>CME takes first place on the list of the largest bitcoin futures trading platforms. This is seen as an indication of a steady increase in institutional participation.