October 7, 2022

The US Securities and Exchange Commission has approved the first Bitcoin futures ETF

The US Securities and Exchange Commission approved the first fund to be traded on the US stock exchange. The decision will go into effect next Monday (18), the last day of the approval deadline (Photo: Unsplash/michael_f)

The US Securities and Exchange Commission (SEC) on Friday (15) approved the first exchange-traded fund, the ETF, for bitcoin futures. (BTC).

Expectations for approval have been high since the beginning of the month, taking the cryptocurrency from $42,000 to $62,000, near its all-time high.

The first application for approval of a fund that is traded on the Bitcoin exchange was made in 2013. Since then, many applications have been rejected by the monetary appraisal mechanism in the United States.

Recently, Gary Gensler, Chairman of the Securities and Exchange Commission, expressed interest in reviewing futures-linked ETF applications under the Corporate Investment Act of 1940.

The US stock exchange, Nasdaq, on Friday (15) accepted a registration request The Valkyrie Bitcoin Futures ETF, created by Director Valkyrie, It was referred to the US Securities and Exchange Commission.

Also on Friday (15) the SEC issued a revised post-event prospectus that is the approval of the first Bitcoin futures fund to trade on the US exchange, which was created by the ProShares manager.

The decision must enter into force next Monday (18), the last day of the deadline for final approval.

The launch of the fund is the culmination of a nearly decade-long campaign to make an ETF, with $6.7 trillion in assets.

Digital currency advocates have been seeking approval as a confirmation of cryptocurrency acceptance since Cameron and Tyler Winklevoss, twins famous for their involvement in the history of Facebook, submitted their first Bitcoin ETF registration application in 2013.

Approval has been elusive for years to issuers who, amid a series of false signals of progress and outright rejection, have tried to get a variety of different structures approved for trading.

Over the years, there have been plans for funds intended to invest in bitcoins through a digital vault or that could use leverage to increase returns. Others sought to mitigate the notorious volatility of bitcoin, a major concern of the SEC.

The Securities and Exchange Commission has argued in the past that the cryptocurrency market poses too many risks for investors. The agency has expressed concern about the possibility of price manipulation and insufficient liquidity, and that the extreme fluctuations in the price of Bitcoin could cause huge losses to retail investors.

Bloomberg com

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The US Securities and Exchange Commission has approved the country’s first Bitcoin futures ETF. (Photo: SEC/Reproduce)