ProShares created a notice with the SEC participating in the ETF issuance. According to the SEC’s schedule, the first official opinion of said ETF would have appeared this Tuesday.
This Tuesday, October 19, the trading of shares of the first bitcoin ETF on the New York Stock Exchange (NYSE), issued by the firm ProShares, took its course.
ProShares introduced a notification to the United States Securities and Exchange Commission (SEC) on Monday, revealing that the commercialization of the ProShares Bitcoin Strategy ETF will begin next Tuesday.
This information joins the prospectus introduced by that firm last Friday 15th, which constituted an announcement of the approval of said ETF.
On the other hand, ProShares CEO Michael Sapir, while speaking to the New York Times, confirmed the release of the ETF on Tuesday. The executive said that many investors have been attracted to bitcoin but were hesitant to play a more relevant role in cryptocurrency exchanges.
According to Sapirthese, various investors demanded more convenient access to bitcoin in an envelope that has integrity in the marketplace.
Although there is no official statement from the SEC regarding the approval of the ProShares Bitcoin ETF, the latest ProShares documents remain without response by the regulator, so the situation suggests that the green light to the ETF is feasible.
Preparing the ETF Issuance
On the other hand, preparations in the NYSE for the ETF issuance are already underway, as can be seen from the communication added to the SEC by the exchange itself. The NYSE advised through this document that the regulator has already approved the shares of the ProShares Bitcoin Strategy ETF.
This year, 19 bitcoin ETF applications got filed with the SEC. Seven of these applications referred to ETFs based on bitcoin futures, while the remaining twelve are “physical” or spot bitcoin ETFs, as explained in this Arcane Research study.
The first expected moves of the SEC correspond to bitcoin ETFs based on futures. This last modality is preferred by the SEC, according to a series of statements that came from its president, Gary Gensler.
The president of the United States Securities and Exchange Commission (SEC), Gary Gensler, waved his hand in favor of ETFs with roots in bitcoin futures.
These statements appeared at the North American Conference on The Future of Management of Assets. Gensler consolidated his statement regarding the adequacy of mutual funds, and bitcoin ETFs oriented towards investing in more futures contracts.
New Business Strategies, New Structures, and New Practices
The SEC released Gensler’s address at the conference on Wednesday, highlighting that the asset management industry is currently evolving. The SEC is now seeking new business strategies, structures, and even new practices.
Currently, the regulator expects more than 14,000 registered investment advisers, with more than 48 million clients and nearly $ 112 trillion in assets under management. The regulation, according to Gensler, has roots in two primordial policies enacted in 1940.
After including private funds, and new regulations on financial disclosure by fund managers, Gensler aimed at investment vehicles that provide exposure to crypto-assets.
He mentioned that several mutual funds got launched this year. These mutual funds got invested in bitcoin futures and traded by the Chicago Mercantile Exchange (CME).
By: Jenson Nuñez
