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Bitcoin heads towards $60,000 with ETF approval on the horizon

Published 10/14/2021, 05:18 PM
Updated 10/14/2021, 05:18 PM
© Reuters.

By Samuel Indyk

Investing.com – The price of Bitcoin resumed its path higher on Thursday with markets still hopeful that a Bitcoin ETF, most likely based on Bitcoin Futures, will be approved by the US Securities and Exchange Commission (SEC) within the next week or two.

ETF Filings

There are a number of filings for Bitcoin ETFs currently under review. It is more likely that futures ETFs registered under the Investments Company Act of 1940 will see approval first.

The SEC Chair Gary Gensler has previously signalled his favourability for a Bitcoin futures ETF, rather than one based on the underlying asset.

Speaking last month, Gensler said the ’40 Act “provides significant investor protections” for mutual funds and ETFs, adding that he was looking forward to staff’s review of such filings.

Eric Balchunas, Bloomberg’s senior ETF Analyst, highlighted that Valkyrie has recently updated their Bitcoin futures ETF prospectus, adding the ticker BTF. Balchunas signalled that this typically only happens when the fund is “ready to launch”.

“Can't say this is done deal type evidence but a good sign IMO,” Balchunas said on Twitter (NYSE:TWTR).

ARK files for Bitcoin futures ETF

Another positive development in the world of Bitcoin ETFs came yesterday when Cathie Wood’s ARK Invest filed for a Bitcoin futures ETF under the ‘40 Act. ARK had previously filed for a physical Bitcoin ETF but this is the first time the asset management firm has filed for a futures only ETF.

In the filing, ARK said that it will only invest in Bitcoin futures and will not invest in BTCC or GBTC options. “The fund does not invest directly in Bitcoin or other digital assets”, the filing said.

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At 10:11BST, Bitcoin is trading around $57,370, off the highs above $58,000 hit earlier in the trading day but still up over 5% in the last 24 hours.

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