Bloomberg: first Bitcoin ETF approvals to happen in October
Bloomberg said in a new report that the US Securities and Exchange Commission intends to authorize the first Bitcoin ETF. Against the background of this news, the price of the main cryptocurrency on the market continued its rapid upward movement.
There are only a few days left before the SEC's deadline for reviewing two applications, and the community has been counting them off with bated breath for most of the month. Expectations of ETF approval by the US SEC have always been “touted” in the crypto community as a guaranteed catalyst for BTC prices to skyrocket. Considering that the value of the crypto asset has grown by 35% over the past few weeks amid optimistic expectations of investors regarding the BTC-ETF, and today it has already exceeded the $60,000 mark on Huobi, analysts were right.
According to Bloomberg, we are talking about the approval of Bitcoin ETFs submitted by VanEck, Valkyrie, ProShares, and Invesco by the end of this month. Although crypto influencer Lark Davis is confident that the market needs spot Bitcoin ETFs, not futures. Popular cryptanalyst Willy Woo agrees, saying bitcoin futures ETFs could be a poor choice for individual investors, giving the lion's share of the industry edge to hedge funds.
The current chairman of the US SEC also expressed his opinion about the BTC-ETF futures. Gary Gensler, by contrast, suggested that they could become a less risky instrument for investors since they are deeply entrenched in regulated commodity markets. He also hinted that politicians are more loyal to ETFs based on futures, but they don't like cryptocurrencies in their “pure form”, to put it mildly.
Bloomberg analyst Eric Balchunas is also confident that if Bitcoin futures ETFs are approved, they can limit the "positive response" from investors and advisers, who, as a rule, do not like derivatives. The main catalyst, according to Balchunas, could be physically backed ETFs.
In fact, the SEC may not even take action. According to federal law, applications will enter into force if the commission ignores the established deadline, without asking companies for any changes on them, or without urging issuers to withdraw applications.
Whether the crypto forecast of Bloomberg analysts will come true, we will find out later this month.
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