The U.S. SEC( Securities and Exchange Commission) in a new report by Bloomberg is set to allow the first Bitcoin futures exchange-traded fund (ETF).
More so, The publication reports on that the U.S. regulator
“isn’t likely to block the products from starting to trade next week,”
Noting people familiar with the matter.
Furthermore, This news is coming multiple hours after the SEC reveals in a tweet through its investor education account.
It says that
“Before investing in a fund that holds Bitcoin futures contracts,..”
“…make sure you carefully weigh the potential risks and benefits.”
Additionally, Bitcoin futures ETFs are not same from Bitcoin ETFs. Which of course, this is due to they are based on futures contracts and are filed under mutual fund rules.
Meanwhile, The SEC Chair Gary Gensler recently expresses interest in reevaluating applications for a bitcoin ETF. Especially, ones tied to futures under the Investment Company Act of 1940.
Then, he takes out any mention of spot products filed under the Securities Act of 1933.
However, the SEC sets back the deadlines for four Bitcoin spot ETF applications to November and December.
Consequently, the price of BTC spikes by over $2,000, touching over $59,000 shortly after the news.
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