The crypto lending platform BlockFi filed an application with the SEC to launch an exchange-traded fund (ETF) based on CME-traded bitcoin futures and the provisions of the Investment Company Act of 1940.
In early August, SEC Chair Gary Gensler stated that an ETF meeting these conditions could be approved. In late September he confirmed this stance.
The BlockFi Bitcoin Strategy ETF filing was the seventh to be considered under the latest SEC guidance. The platform was outpaced by Valkyrie Investments, VanEck, Invesco, ProShares, Galaxy Digital and AdvisorShares.
In August, Bloomberg predicted approval by the SEC of a Bitcoin futures ETF by the end of October. At the time, the ProShares filing was seen as the frontrunner.
On October 8, analysts put the odds for the firm at 2-to-1. Overall, they forecast a 75% probability of a positive SEC decision on a Bitcoin futures ETF.
Gonna start a thread laying out a case as to why @EricBalchunas and I are putting odds at 75% for a Bitcoin Futures ETF coming to the U.S in October. Here’s where we view the odds of the ETF getting first approval 1/x pic.twitter.com/LRrzG9XLX1
— James Seyffart (@JSeyff) October 8, 2021
Earlier, agency analysts noted the weaknesses of bitcoin-futures ETFs relative to their spot counterparts.
In October, the SEC extended the review period for four applications to launch physical bitcoin ETFs from Global X, WisdomTree, Kryptoin Investment Advisor and Valkyrie Investments.
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