The first Bitcoin futures ETF, the Winklevoss Bitcoin Trust, has been approved by the Securities and Exchange Commission (SEC) for trading on the New York Stock Exchange. The approval was a long time coming for this product, which has been in development since 2013.
The bitcoin futures etf symbol is the first Bitcoin Futures ETF to be listed on the NYSE. It will be interesting to see if other Bitcoin ETFs are approved in the near future.
Since it has been in demand for almost a decade, the Bitcoin ETF is perhaps one of the most anticipated and sought investment vehicles in the crypto sector. Regulators have never been pleased with the ETF plans they have received from different applicant firms throughout the years, thus they have never been authorized.
Requesting a Bitcoin Exchange-Traded Fund (ETF)
Requests for a Bitcoin ETF have been coming at the US Securities and Exchange Commission (SEC) since 2013, when Cameron and Tyler Winklevoss submitted one, only to have it denied. Since then, many companies have filed their own Bitcoin ETF proposals, including some that do so on a near-daily basis, in an endless attempt to please the SEC and comply with the regulator’s rules while simultaneously addressing any and all issues that the regulator uncovers with each new application.
VanEck is an example of a company that has repeatedly submitted its own ETF proposal, but it was never good enough for the authorities.
In 2017, 2018, and every year thereafter, the SEC has seen a significant increase in Bitcoin ETF proposals. It had over a dozen of them waiting to be evaluated at one time. Unfortunately, they, like all the others, failed to meet the SEC’s stringent requirements under previous chairperson Jay Clayton.
For a while, many people thought that Gary Gensler’s appointment as SEC Chairman would alter things for the crypto sector. After all, Gensler was an MIT professor who taught a crypto course, thus he had a better understanding of the crypto sector than his predecessor at the Securities and Exchange Commission.
Despite his advice, the SEC continued to reject Bitcoin ETF applications, indicating that although he may be more acquainted with crypto, he will not allow anything past the SEC’s scrutiny.
He did remark at one point that he doesn’t see a Bitcoin ETF coming very soon. However, he said in August that regulators may be more receptive to an ETF based on futures rather than cryptos.
That was all Bitcoin ETF fans needed to hear, and soon long, a Bitcoin Futures ETF proposal was submitted to the SEC for consideration, and it was accepted, much to everyone’s surprise.
What do you need to know about the Bitcoin futures ETF?
The first Bitcoin futures ETF is set to debut on the New York Stock Exchange (NYSE) today, Tuesday, October 19th, after receiving surprise clearance. It goes without saying that this is a watershed moment for the cryptocurrency sector, and it will only be a matter of time until more ETFs of this kind appear.
Many have referred to this ETF as a “huge disruption,” adding that investors are ecstatic about it. That much is correct. After the ETF was authorized, the price of bitcoin increased by almost 10%, enabling it to reclaim its previous high of $60,000 per coin. In fact, Bitcoin was on the verge of breaking over $63,000 only a few hours ago, but it has since corrected somewhat and is now trading at $62,103.
While this isn’t exactly what the crypto industry was hoping for — an ETF with direct exposure to Bitcoin — it does provide a new option for any business that wants to go crypto but doesn’t want to risk dealing with uncontrolled assets. Doing so poses a danger to the company, its shareholders, and it may irritate the SEC, something no business wants to happen.
However, investors need be aware of a few factors before investing in the Bitcoin futures ETF, which is currently accessible. It’s worth emphasizing, for example, that although the Fund will have a strong correlation with Bitcoin, its value will not be mirrored. This is because this ETF focuses on Bitcoin futures contracts rather than Bitcoin currency.
It’s also worth noting that owning funds is more expensive than owning individual assets, but some investors may be prepared to pay this premium for the institutional-level liquidity, as well as custody and execution, that ETFs provide. Especially when holding assets necessitates the management of such assets by the investor.
There are also some who see cryptos as just speculative assets, claiming that the values of their futures contracts are excessively volatile, owing to Bitcoin’s continued instability and volatility.
Will the Securities and Exchange Commission (SEC) ever approve a Bitcoin ETF?
So, with the launch of the Bitcoin futures ETF today, what does this imply for the future? Will a Bitcoin ETF ever become a reality?
Nobody knows, is the plain and quick answer. The SEC will most likely utilize the Bitcoin futures ETF as a test to determine whether there is demand for exposure to Bitcoin futures, and then use it as a benchmark for future regulations. However, it is unlikely that a Bitcoin ETF will be authorized until Bitcoin is fully regulated.
Regulating Bitcoin, on the other hand, is difficult due to the fact that many regulators are confused with cryptocurrencies and the fact that it is highly volatile. The fact that Bitcoin is evolving from a digital money to a digital store of value isn’t helping things either, as many people now see it as the next gold.
Finally, a Bitcoin ETF will most likely appear at some point in the future. However, when that day may come is extremely hypothetical; it might happen next year, or sometime in the following ten years, or it could never happen at all. One thing is clear, however: the demand for it, as well as for Bitcoin in general, is strong and rising.
So, whether or not an ETF is introduced in the foreseeable future, Bitcoin remains a lucrative investment option. Of fact, it’s a very volatile market, but it’s still extremely profitable for those who understand it and know how to minimize losses caused by volatility.
The bitcoin futures etf ticker symbol is the first Bitcoin Futures ETF to reach the New York Stock Exchange. This has led many to believe that a Bitcoin ETF will be next.
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