A senior analyst at Bloomberg ETF says there are “good” signs that a Bitcoin Exchange Traded Fund (ETF) will soon be approved, noting that Ark Invest is offering a customized ETF ticker for Bitcoin futures and Valkyrie is updating its ETF prospectus with the ticker.
Ark Investment Management Katie Wood LLC applied for a Bitcoin Futures (BTC) ETF under the ARKA Index, while Valkyrie contributed its BTC futures prospectus to the BTF Index.
According to Bloomberg analyst Eric Balchonas, companies usually update their offerings when they have everything ready and “ready to go,” indicating that Valkyrie may soon receive the green light from the US Securities and Exchange Commission (SEC).
Balchunas also mentioned Thursday’s implementation of Bitcoin futures ETFs by Ark Invests in partnership with 21Shares and the white-label Alpha Architect, and noted that the designated ARKA group was “another good sign” that the SEC should put an end to it.
Citing the Valkyrie ETF, the analyst added that he is looking for “this type” of updated prospectuses when deciding whether there is an official green light from the SEC, and said candidates often update the latest details “just before launch.” And he admitted that there is nothing definite in the crypto sector.
Permabear Mr. Keith downplayed the news from Ark Invest and said that all Ark did was update the “ARKW ETF Outlook” to say it could be listed on BTC through an ETF in Canada.
However, Ark’s latest submission of ETFs to the SEC does not mention the word “Canada,” and the statement makes it clear that the fund is seeking to invest in “exchange-traded bitcoin futures settled in US dollars” on the Chicago Mercantile Exchange. (CME).
The price of BTC has risen 28% since the beginning of October and is around $ 57,500 at the time of writing. Many viewers explained the recent expectations that the SEC will soon approve a Bitcoin futures ETF.
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Balchunas said earlier this month that an ETF backed by bitcoin futures has a high chance of being approved in October. He argued that they are governed by Law 40, which the SEC prefers because it provides more consumer protection than the physically backed bitcoin ETFs regulated by Law 33.
“Yes, the Bitcoin ETF has been approved by the Securities and Exchange Commission, but it is for physically sponsored individuals under Law 33,” he said.
“The forty ETFs (that Jeans loves) are still alive and are likely to work in the right direction (we think there is a 75% chance they were approved in October).”
Opinions differ, however, and Todd Rosenbluth, senior director of ETF and mutual fund research at research firm CFRA, said this week that he believes approval of a BTC futures ETF could be delayed until 2022.
Rosenbluth told CNBC ETF Edge that the current cloud computing regulatory environment could cause further delays and that the SEC may wait for all ETFs to be approved at the same time to avoid a “first mover advantage.”
“It is possible – in fact, we think it is likely – that we will see a delay in Bitcoin futures ETFs by 2022 until the regulatory environment becomes clearer,” he said.