The US-based exchange-traded fund or ETF for Bitcoin will start its trading operations despite the deadline for the applications to the Securities and Exchange Commission (SEC) being close. As experts have commented in unison, this will be a turning point for the crypto sector.
Anonymous sources have informed that there is a high probability that the regulator will sanction the trade of products next week. This was unexpected as the regulator had previously dismissed the applications petitioned by the Bitcoin exchange-traded fund. However, this time it has made provisions for an exception precisely because this time, the investing companies, ProShares and Invesco, have set their applications on futures contracts and have submitted them by complying with all the regulations of the mutual funds. According to Gary Gensler, the Chairperson of the SEC, these regulations can grant “significant investor protections”. However no official statement could be accessed from either the other spokespersons of the SEC or ProShares officials.
Except for a last-minute reversal, the much-awaited launch of the capital pool will finally bring to fruition the prolonged campaign by the ETF sector worth 6.7 trillion US dollars, which lasted for almost ten years.
The supporters of Exchange-traded fund for Bitcoin had been actively seeking the green signal for approval of the fund, as a part of their campaign of increasing awareness about Bitcoin and other cryptocurrencies among mainstream users. The first petition for mainstream acceptance was submitted by twin programmers of Facebook, Cameron and Tyler Winklevoss, back in 2013. However, the SEC had declined all petitions until now, citing market risks for investors. However, with the mitigation of the volatility, 4 Bitcoin ETFs authorized by futures contracts will commence their transactions on the US exchange in October.