Bloomberg Analysts Forecast SEC Approval of Bitcoin ETF by End-October

Bloomberg analysts predicted that the U.S. Securities and Exchange Commission (SEC) would approve the application to launch a Bitcoin-ETF by the end of October.

New note out today from @JSeyff 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

Such a conclusion was drawn after withdrawal of VanEck and ProShares filings to launch a similar Ethereum-based instrument, two days after submission.

In the decision of asset management firms, experts saw signs of ongoing engagement with the regulator. They noted a higher probability of addressing all remaining issues to launch the product after the 75 days prescribed by the rules.

As a frontrunner, the SEC analysts named ProShares’ filing. In their view, the regulator may approve applications from competitors as well, so as not to give any one party an advantage.

Analysts again recalled their criticism of the potential Bitcoin futures ETF. Additional criterion that could shift the SEC’s position is compliance with the Investment Company Act of 1940.

In early August, SEC Chair Gary Gensler stated that an ETF meeting these requirements could be approved. 

Firms that filed applications to launch Bitcoin futures-based exchange-traded funds, in line with regulator recommendations, were Valkyrie Investments, VanEck, Invesco, ProShares, Galaxy Digital and AdvisorShares.

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full stream of news, ForkLog — the most important news, infographics and opinions