Monday, July 4

New tickers and ARK filing show Bitcoin futures ETF approval imminent – analyst

A senior Bloomberg ETF analyst says there are “good” signs that a Bitcoin exchange-traded fund (ETF) will soon be approved, pointing to Ark Invest applying for a Bitcoin futures ETF with an assigned ticker and Valkyrie update your own ETF prospectus with a heart.

Cathie Wood’s Ark Investment Management LLC applied for a Bitcoin (BTC) futures ETF under the ARKA ticker, while Valkyrie allocated its BTC futures prospectus with the BTF ticker.

According to Bloomberg analyst Eric Balchunas, companies typically upgrade their proposals when they are all set and “ready to go,” suggesting that the United States Securities and Exchange Commission (SEC) could soon give Valkyrie the green light.

Balchunas too pointed to Ark Invests’ Bitcoin futures ETF application on Thursday in partnership with 21Shares and Alpha Architect, noting that the assigned ARKA ticker was “another good sign” that the SEC was prepared to give a tick.

Referring to the Valkyrie ETF, the analyst added that he looks for “these kinds” of updated prospect submissions when determining whether to receive an official green light from the SEC, and said applicants often update final details “just before” launch. . He admitted that with the crypto sector, nothing is certain.

Permabear Mr Whale downplayed the significance of the Ark Invest news, saying that all Ark did was update its “ARKW ETF prospectus” to say that it can gain exposure to BTC through Canadian exchange-traded funds.

However, Ark’s latest ETF filing with the SEC did not to mention the word “Canada” and the application clearly describe that the fund seeks to invest in “exchange traded Bitcoin futures contracts that are settled in cash in US dollars” on the Chicago Mercantile Exchange (CME).

The price of BTC has risen 28% since the beginning of October to stand at around $ 57,500 at the time of writing. Many onlookers have attributed the recent bombshell to expectations that the SEC will soon approve a futures-based Bitcoin ETF.

Related: SEC Chairman Gary Gensler Is Actually Pro-Bitcoin, Argues Volt Equity CEO

Balchunas stated earlier this month that ETFs backed by Bitcoin futures have a high probability of being approved in October. He argued that they are regulated by “Law 40”, which is favored by the SEC as it offers greater consumer protections than physically backed Bitcoin ETFs regulated by “Law 33”.

“Yes, the SEC has rejected the approval of the Bitcoin ETF, BUT that is for those physically backed under Law 33,” he said, adding:

“Futures ETFs filed under Act ’40 (which Genz loves) are very much alive and probably on schedule (we think 75% chance was approved in October).”

Opinions vary, however, with Todd Rosenbluth, senior director of ETF and mutual fund research at research firm CFRA, arguing this week that he believes approval of a BTC futures ETF may be delayed until 2022.

Speaking at CNBC’s Edge ETF, Rosenbluth set that the current cloudy regulatory landscape could cause further delays and that the SEC could be waiting to approve all ETFs simultaneously to avoid a “first-to-act advantage.”

“It is possible, in fact, we think it is probable, that we will see a delay of a Bitcoin futures ETF until 2022 until the regulatory environment is clearer,” he said.