SEC quietly approves first futures-based Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) approved ProShares’ application to launch the futures-based Bitcoin Strategy ETF. This follows from the updated prospectus filed by the company. 

The deed is done. Home free… $BITO pic.twitter.com/Qf3U9quSfy

— Eric Balchunas (@EricBalchunas) October 15, 2021

Trading is scheduled to begin on Monday, October 18.

The fund’s underlying asset will be Bitcoin futures on the Chicago Mercantile Exchange (CME). In the updated prospectus, mention of investments in Canadian Bitcoin ETFs has been removed.

Importantly. The new prospectus looks to have taken out the language for investing in Canadian ETFs. First is the new prospectus. Second is the old prospectus. pic.twitter.com/St7kvs3UyQ

— James Seyffart (@JSeyff) October 15, 2021

According to CoinDesk, the five-commissioner SEC meeting on ProShares’ fund took place on Friday, October 15. However, the conclusion that it was approved rests on the updated prospectus and the 75-day review window. Because the agency did not reject the application in time, it is deemed approved, though the Commission publicly did not confirm it.

Technically, the SEC doesn’t approve or give a green light

— Frank Chaparro (@fintechfrank) October 15, 2021

As Bloomberg reported, the SEC would not block the launch of the futures-based Bitcoin ETF. The company’s terminal also shows a corresponding page for the ProShares fund under the ticker BITO.

Nasdaq also expressed readiness to add to listing a similar fund, Valkyrie Bitcoin Strategy ETF, which had previously filed Form 8-A to register securities. ProShares filed the same form.

If anyone needs more evidence that this is happening on Tuesday. Proshares’ 8A just hit which registers the ETF’s shares with the SEC for trading on an exchange. pic.twitter.com/Idp6cm4qet

— James Seyffart (@JSeyff) October 15, 2021

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