An increasing number of asset managers and financial organizations are aiming to capitalize on the growing interest in cryptocurrencies since Bitcoin’s dramatic surge in 2017.
In the end, most (if not all) of these attempts were in vain. This was due to dwindling demand during economic crises, opposition from government agencies, or overall uncertainty about crypto’s future as an asset class.
Since Bitcoin has gained acceptance from the public, institutions, and even countries like El Salvador, it is only appropriate that crypto ultimately cements its validity.
The Securities and Exchange Commission (SEC) officially announced today that it had approved the first U.S-based Bitcoin Futures ETF.
These delays come in the aftermath of the SEC delaying its decision on at least a dozen more Bitcoin ETF applications for months.
Asset management business Proshares, which applied for its ETF earlier this summer, plans to begin trading as soon as next week, according to sources. The ETF will begin trading on Monday, October 18th.
This is, without a doubt, a defining moment in the Bitcoin industry. Exchange-traded funds will see an influx of funding from both individual investors and institutions.
ProShares’ Bitcoin ETF will monitor Bitcoin futures rather than the digital asset’s price directly.
According to SEC Chair Gary Gensler, future-based products will likely offer better investor protections. This is due to the stricter securities regulations they must operate under.
It is possible that the net asset value will be higher or lower than the futures net asset value. However, the 0.95 percent management fee charged by Proshares’ ETF. This is significantly lower than the 2 percent cost charged by GBTC.
It’s probable that investors will move their money from GBTC to ProShares’ ETF. This is because of the latter’s strict redemption restrictions and deviation from NAV.