While the SEC approve this ETF that provides indirect exposure to the digital currency, the expectation about the arrival of the first fund based purely on Bitcoin or in cryptocurrency futures.
The US Securities and Exchange Commission (SEC) approved on October 5 the EFT Volt Crypto Industry Revolution and Tech, which will allow participants to have a greater exposure to Bitcoin, although it does not invest directly in the digital currency.
In accordance with information published by the SEC, This fund tradable on the US stock exchange would be used to monitor the so-called “Companies of the Bitcoin Industry Revolution”, which would become companies that manage most of their assets in BTC or receive income from mining activities, loans or transactions with the digital currency.
This new ETF linked to companies associated with Bitcoin will be marketed through NYSE Arca under the symbol BTCR, and will be managed by the fund Volt Equity. It is important to note that this fund will not monitor the price of Bitcoin or keep the digital currency in custody, so its price will depend mainly on the participating companies, which do operate within the ecosystem of services of the digital currency.
Expectations around a EFT based on Bitcoin
Although the proposal in a way brings the participants closer to Bitcoin, this is simply an approximation to the expected ETF based on the digital currency, whose proposals are still on the SEC desk awaiting an official verdict.
In the case of the proposals currently consigned, already the SEC delayed verdicts on Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust and Kryptoin Bitcoin ETF, which will have to wait between the end of November and December to receive a response. Previously, the regulatory body also postponed the decision on the one presented by VanEck, on which there are no good prospects at this point.
Currently in the running for the first Bitcoin ETF in the United States there are important participants, among which stands out ARK Invest by Cathie Wood, Galaxy Digital by Mike Novogratz, and the fund manager Fidelity. These three entities appear as the most reputed interested in this type of product, and plans for Grayscale to submit your own application.
Despite the fact that nothing is written, media analysts like Bloomberg stand firm in the face of the possibility of the arrival of the first Bitcoin ETF for the US no later than late October / early November, although this is most likely based on the futures market. In this regard, they point out that there is a lot of pressure on the SEC since this could open an important line of business, in addition to the fact that there are several countries that are already operating their own trusts based on digital currency, such as Canada and Brazil.
While expectations about the first ETF based on Bitcoin or in digital currency futures, various entities have presented proposals that are far from this line but are also associated to some extent with the cryptocurrency.
In that sense, certain proposals have linked their funds to companies within the crypto sector. Such is the case of Goldman Sachs, which also has its own ETF associated with the sector DeFi, although this points more towards the centralized companies responsible for some projects.
For now, it only remains to wait and see what resolution the SEC versus expectations around an ETF Bitcoin Meanwhile, the digital currency remains in the main markets above USD $ 54,000 per unit, capitalizing on a slight fall of 1.3% in the last 24 hours.
Version by Angel Di Matteo / DailyBitcoin
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