Today Bloomberg reported that the SEC is poised to allow the first Bitcoin exchange traded fund (ETF) in the United States. While the SEC has previously approved cryptocurrency-related ETFs, it has only been for ETFs that invest in stocks where the SEC can have more confidence about an absence of price manipulation. The launch of a U.S. ETF has been heavily anticipated as a signal of cryptocurrencies becoming mainstream.
Back in August, when SEC Chair Gary Gensler spoke at the Aspen Security Forum, he dropped heavy hints about a willingness to consider ETFs that are based on futures.
We wrote that he “expects to see filings for ETFs invested in CME Bitcoin futures. Most ETFs have been rejected because there are concerns over price transparency and manipulation. Reading between the lines, the SEC is more likely to give the green light if an ETF is based on a regulated derivative.”
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