The wait for the approval of the first Bitcoin ETF is endless. SEC boss Gary Gensler now indicated that Bitcoin ETFs would have better chances of approval if they were based on Bitcoin futures. The reaction was not long in coming.
Traders and investors are eagerly awaiting the first Bitcoin ETF in the US. While the corresponding applications are piling up at the SEC, the financial service providers are looking for alternatives. Triggered by a comment by SEC chairman Gary Gensler, there is now a real boom in ETFs based on Bitcoin futures. Futures are forward transactions in which the trading partners agree on a specific deal at the current point in time. So such an ETF would not be based on the largest cryptocurrency itself.
Valkyrie Investments is now coming and submitting an application for a Bitcoin Futures ETF after its application for a Bitcoin ETF. On Tuesday, a surprise regulatory filing from Nasdaq revealed the plan. The application for the Valkyrie XBTO Bitcoin Futures Fund is the second ETF proposal from asset management, which submitted an application to the SEC in January.
The fact that Valkyrie is now planning a Bitcoin futures ETF application with Nasdaq for its second ETF application should not be a coincidence. In addition, asset management has a partner exchange at hand with the Nasdaq. That means the SEC can begin reviewing the product. This means that Valkyrie is closer to deciding on a Bitcoin futures ETF than any other potential issuer.
Citigroup is also considering Bitcoin Future ETF
The US banking giant Citigroup is one of these issuers. According to media reports, Citigroup is still working on the necessary regulatory approvals and would join the other major US bank Goldman Sachs in trading Bitcoin futures.
We are currently considering products such as futures for some of our institutional clients as they have to meet the strict regulatory framework
, quoted Coindesk a Citigroup spokesperson. Gary Gensler’s statement now seems to have sparked a flood of requests. According to Bloomberg Both ProShares and Invesco have also filed plans for futures-based funds with the SEC.
I look forward to staff reviewing such requests, especially if they are limited to the Bitcoin futures traded on the CME
Gensler announced in front of the Aspen Security Forum on Tuesday. In January, the CME took first place on the list of the largest Bitcoin futures trading platforms. This is considered to be an indication of a continuous increase in institutional participation.