ETF approval, Bloomberg analysts argued.
Securities and Exchange Commission, SEC, could finally greenlight a Bitcoin futures ETF in the next two months, Bloomberg analysts predicted. The strategists described recent withdrawals from Ethereum futures
ETF applications as the main reason behind their optimism.
The issue of whether or not the U.S. regulator will approve an exchange-traded fund that tracks the performance of the leading cryptocurrency has been debated for years inside and outside the community.
While other countries like Canada and Brazil have already launched such products, the SEC has been reluctant so far. And it’s not that there haven’t been many applications; on the contrary, some companies, such as VanEck, have filed several. However, the Commission has rejected almost all of them so far, Cryptopotato
Still, many are optimistic that Bloomberg
senior ETF analyst Eric Balchunas and BI ETF analyst James Seyffart believe a BTC exchange-traded fund in the U.S. could be approved sooner than most people think.
So says Balchunas on Twitter
New note out today from @JSeyff sees Ether ETF withdrawals increase the likelihood of a Bitcoin futures ETF launching in late October with ProShares as the favorite, though it could (and possibly should) be a group to avoid first mover advantage.
New note out today from @JSeyff</a> re how the Ether ETF withdrawals adds to likelihood that a bitcoin futures ETF will be launched by end of October with ProShares as favorite, altho it could (and arguably should) be a group to avoid first mover advantage. pic.twitter.com/zXFFgmEHw6
– Eric Balchunas (@EricBalchunas) August 24, 2021
Ethereum ETF Withdrawals Are Key
VanEck and ProShares filed papers with the SEC last week to release exchange traded funds tracking the second-largest cryptocurrency – ETH. However, just two days later, both asset managers withdrew their applications.
This, according to Balchunas and Seyffart, could prove to be the key to a BTC futures ETF:
“VanEck and ProShares’ quick withdrawal of Ethereum futures ETH proposals is a good sign for a potential Bitcoin futures ETF, given that the SEC has allowed those filings to remain active. A launch could come as soon as October, as we believe the SEC should allow several at once to avoid granting first-mover advantage,” they say.
Then, in the Twitter thread Balchunas adds:
“We believe the Ether recall shows the SEC is in regular contact with issuers, which should mean any issues are fixed so they can launch 75 days after filing.”
“That said, the excitement will only be half of what it would be for a real Bitcoin ETF. The best metaphor I can come up with is that it’s like being served O’Doul’s when the party wants real beer. Will they drink it anyway? We’ll find out soon enough.
O’Doul’s is a non-alcoholic beer… Obviously it’s similar in taste but it’s not the same as an alcoholic beer is it?
Translation and version by DiarioBitcoin
Image by Unsplash