Investment provider ProShares will finally launch its ETF after many unsuccessful attempts by investment companies. Analysts believe that this could lead to the approval of other ETFs based on the market value of BTC.
The US Securities and Exchange Commission (SEC) recently approved a Bitcoin (BTC) futures exchange-traded fund (ETF). That is the prospectus presented by investment provider ProShares, whose ETF will launch next week.
That comes after investment companies have made unsuccessful attempts at the SEC for years. Those companies wanted to expand their offer for institutional investors, which will finally be a reality next week.
In that way, the United States finally has its first Bitcoin ETF issuer. They will offer a Bitcoin futures exchange-traded fund where people can trade securities for future contracts. In other words, the parties will have to buy or sell an asset such as Bitcoin within a specified time at an already agreed price.
Five commissioners from the SEC recently met and decided to approve the application. That investment provider had filed the request with that government agency last summer.
The Journey that Bitcoin ETFs Have Had to Take
The ecosystem has turned its attention to Bitcoin ETFs and the SEC for a significant time. The government entity had postponed the verdict on four other approval requests until recently. However, there has been expectation about what could happen on dates like next October 18th.
Experts noted that this could be the start for the approval of a Bitcoin ETF based on the market value of the crypto asset. The market reacted with the rise in the price of the pioneering cryptocurrency above the USD 60,000 barrier. Rumors about the possible approval that began to circulate contributed to that happening.
Bitcoin’s value recently exceeded USD 60,000 for the first time in six months, approaching its all-time high. That comes as investors are confident that the SEC will approve an exchange-traded fund (ETF) based on Bitcoin futures next week.
After rebounding from USD 57,125, the price of BTC reached USD 60,948 at the time of writing. The value of BTC is less than 8% from its most recent all-time high of USD 64,642 on April 14th.
The SEC Chairman Gives His Support to Bitcoin Investors
The SEC chairman is keen to get involved in helping investors get closer to Bitcoin, which analysts see as positive. Gary Gensler had recently said that the agency that he chairs has sufficient authority to regulate cryptocurrencies.
The official said the government agency has enough power to regulate the cryptocurrency sector. For that reason, he states that they do not need to wait for congressional authorization.
Once again, Bitcoin has proved to be capable of rebounding from its worst drops and returning to its all-time highs. The approval of that ETF by the SEC is just the first of many others. It is only a matter of time before the use of Bitcoin becomes widespread in the United States.
By Alexander Salazar
