Bloomberg reports imminent approval of Bitcoin futures ETF as price tops $61,000
On October 15, 2021, Bitcoin traded at $60,000 as Bloomberg reported that a Bitcoin futures ETF slated for listing next week had been approved.
In Bloomberg Terminal they are adding ProShares Bitcoin Strategy ETF (ticker BITO), whose base assets are Bitcoin futures on the Chicago Mercantile Exchange (CME), and not the coin itself. The screenshot from the terminal shows October 19 as the start of trading, and some resources misinterpreted this as a fact of approval by the U.S. Securities and Exchange Commission (SEC).
Another driver pushing Bitcoin to $61,700 was Valkyrie Bitcoin Strategy ETF in Form 8‑A for registering securities. A copy of the filing was submitted to Nasdaq, where they confirmed willingness to add the ETF to the listing after SEC approval.
While these headlines point to a high likelihood of CME-based Bitcoin futures ETFs, they have not become established facts until a corresponding SEC decision is made.
A Bloomberg employee noted that it is very rare for tickers added to the terminal not to pass listing, although historical precedents exist.
Bitcoin price surpassed $60,000. The asset is currently trading at $60,115.
As this article was written, digital gold was trading around $59,500. The asset had risen about 2.6% over the past 24 hours, according to CoinGecko.
Well-informed Bloomberg sources said the SEC would be unlikely to block the launch of the instrument. The agency named ProShares and Invesco as the main favourites.
E ar Balchu nas named ‘good signs’ for SEC approval of the first Bitcoin ETFs, update to the Valkyrie Investments fund prospectus and a new ARK Invest filing.
In August, SEC Chair Gary Gensler stated that the regulator would consider Bitcoin ETFs if they are based on CME futures and comply with the Investment Company Act of 1940.
Following this, a wave of registrations for similar funds were filed by Valkyrie Investments, VanEck, Invesco, ProShares, Galaxy Digital, AdvisorShares and BlockFi. The proposed investment products do not provide for direct exposure to cryptocurrency.
Arcane Research notes that at the start of October there were 12 spot Bitcoin ETFs and seven based on futures under SEC review.
Recall, the SEC approved an ETF based on a basket of Bitcoin-related stocks from Volt Equity. The instrument does not provide direct exposure to digital gold.
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