On historic day, US regulators approve Bitcoin Futures ETF

After denying, delaying or ignoring dozens of applications over the past four years, the US Securities and Exchange Commission gave its approval for the first Bitcoin futures ETF this Friday (15).

ProShares presented an amended prospectus this afternoon, indicating that it received the nod to its Bitcoin Strategy ETF to move forward on Monday. The company's ETF is tied to Bitcoin futures contracts, not directly to the current Bitcoin price, but its approval still represents a defining moment for the cryptocurrency industry.

ETFs are investment products that track the price of stocks, commodities or other assets; they are traded on public exchanges like shares. This means they can be bought and sold during normal market hours and can easily be incorporated into retirement and savings plans for people who would otherwise avoid the hurdles of buying encryption on an exchange like Coinbase.

A “pure” Bitcoin ETF would closely follow the actual price of the BTC and has not yet been approved in the US. Firms hoping for such an ETF began turning around future-backed ETF proposals after SEC Chairman Gary Gensler suggested they would have an easier path toward approval.

A growing number of companies are awaiting approval for their own ETFs, including Mike Novogratz's Galaxy Digital and Cathie Wood's ARK Invest. By late October, two other Bitcoin futures ETFs could be on the market as the SEC faces deadlines to approve offers from VanEck and Valkyrie.

On Thursday, the agency signaled its intentions when one of its social media accounts tweeted a June 10 investor newsletter covering Bitcoin futures trading.

"Before investing in a fund that holds Bitcoin futures contracts," he wrote, "be sure to carefully weigh the potential risks and benefits."

Right now, Bitcoin holders are ready for the benefits – and for the floodgates to open.

*Translated and edited by permission of Decrypt.co

The post In historic day, US regulators approve Bitcoin Futures ETF first appeared on Bitcoin Portal .

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