In a new move to bring bitcoin futures ETF to the US market, the country’s Securities and Exchange Commission (SEC) appears to be softening its stance on the investment vehicle.
According to a Bloomberg report, the United States SEC has decided to give room for the first Bitcoin Futures Exchange Traded Fund (ETF) to launch in the US.
The report, which cited unidentified sources aware of the matter, revealed that the regulator may not prevent any bitcoin futures ETF from trading eminently, stating that the SEC “isn’t likely to block the products from starting to trade next week.”
It is to be recalled that the SEC had initially rejected proposal applications to approve a “bitcoin ETF” and not “bitcoin futures ETF”, indicating that a “bitcoin ETF” is not the same as “bitcoin futures ETF.”
Pointing to the high risks associated with approving a bitcoin ETF, Gary Genslay, the SEC chairman had earlier said,
“The cryptocurrency market is surrounded by several unregistered tokens that could manipulate the market and leave investors at risk.
However, because bitcoin futures ETF are founded on future contracts, it could provide what Gary tagged “significant investment protection” for investors.
The latest news comes off the back of a statement SEC made on Twitter via its Investor Education and Advocacy handle, it tweeted: “Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.”
Interestingly, institutional investors have long awaited the approval of bitcoin ETF in the United States which may be linked to bitcoin’s mainstream adoption.
The news may be responsible for the latest push of the king coin to $60,000 as traders are likely to build confidence that an approval of a bitcoin futures ETF is around the corner.
Earlier in January, Coinfomania reported that BlackRock, the world’s largest asset manager saw the green light the SEC could approve a bitcoin futures ETF as two of its funds- BlackRock Funds V and BlackRock Global Allocation Fund, Inc.- are likely to engage in futures contracts based on bitcoin.