Analyst: New tickers and ARK filings indicate that Bitcoin futures ETF approval is imminent
Eric Balchunas, Bloomberg Senior ETF Analyst, believes there are “good indicators” that the SEC will accept applications for Bitcoin futures ETFs from Ark Invest or Valkyrie.
Bloomberg’s senior ETF analyst said there are “good” indicators that a Bitcoin ETF will soon get approved. These include Ark Invest filing for a Bitcoin futures ETF under an assigned ticker, and Valkyrie updating their ETF prospectus with a ticker. Cathie Wood’s Ark Investment Management LLC applied for a Bitcoin futures ETF with the ARKA ticker. Valkyrie, however, has assigned its BTC futures prospectus using the BTF ticker. Eric Balchunas, a Bloomberg analyst, said that firms update their proposals when everything is ready for launch. This suggests that Valkyrie may soon get the green light from the U.S Securities and Exchange Commission. Balchunas also pointed out Ark Invests’ Bitcoin futures exchange traded fund application filed on October 13 in partnership with 21Shares and whiteAlpha Architect, noting that the assigned ARKA symbol was “another good indicator” that the SEC was willing to give a tick. People keep asking me what I look for first to confirm SEC approval. It is these type of updated prospectus files. This is what happens right after a launch. They fill in all the XXs, and add ticker. This is bitcoin, so who knows what the future holds?
Referring to Valkyrie’s ETF, the analyst said that he is looking for “these types” of updated prospectus files when determining whether an official SEC Greenlight is incoming. He also stated that applicants often change the final details “right prior” to launch. Permabear Mr Whale acknowledged that there is no certainty in the crypto sector. He said that Ark Invest News only updated its “ARKW ETF Prospectus” to indicate that it might gain exposure to BTC through exchange-traded funds. Ark’s most recent ETF filing with SEC does not mention the word “Canada”. The application clearly states that the fund seeks to invest in “exchange traded Bitcoin futures contracts that have cash settlements in U.S. Dollars” on the Chicago Mercantile Exchange. Notable is also the fact that this filing does not include the word “Canada”. It only invests in futures, no BTCC and GBTC options. Rumor has it that the SEC does not like this and wants them to be strictly futures. pic.twitter.com/l8KTxFtWH8– Eric Balchunas (@EricBalchunas) October 13, 2021
BTC’s price has risen 28% to $57,500 since October. Many observers attribute the recent surge to the expectation that the SEC would soon approve a futures-based Bitcoin Exchange Trade Fund. Related: SEC Chair Gary Gensler is actually pro-Bitcoin. Volt Equity CEO Balchunas stated earlier in the month that Bitcoin futures-backed ETFs are likely to be approved in October. He argued that they are regulated by the “40 Act”, which is preferred by the SEC because it offers greater consumer protections that the physically-backed Bitcoin ETFs regulated in the “33 Act.” This week, Todd Rosenbluth, senior director for mutual fund research at CFRA, stated that he believes approval of a BTC-based futures ETF could be delayed until 2022. Rosenbluth said that the current regulatory landscape could lead to further delays. He also suggested that the SEC might be waiting to approve all ETFs simultaneously to avoid a first-mover advantage.
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