US SEC set to announce verdict on Proshares Bitcoin ETF on Thursday
Proshares Bitcoin ETF and Proshares short Bitcoin ETF are next on the list of Bitcoin ETFs to be approved by the SEC [Securities and Exchange Commission]. Proshares ETF is one among the nine Bitcoin ETFs waiting for approval by the SEC in the next two months. Unlike the previous ETF proposals, SEC cannot dillydally with this one as the regulatory authority has set August 23 as a strict deadline.
In contrast with the previous VanEck/SolidX bitcoin ETF, the Proshares ETF is hinged on Bitcoin futures contracts. The Proshares first proposed ETFs in September but the company observed that the bitcoin futures market was still young. Proshares submitted a bitcoin ETF proposal to the SEC in December but repealed it as the SEC rebuffed many proposals at the time pointing at the volatility concerns of Bitcoin, according to Coindesk.
As per a document, dated March 23, on the official website of SEC, the regulator had started proceedings to determine whether to approve a rule change that lists Proshare ETF on NYSE Arca. The SEC also revealed that it has received a comment letter about the proposal stating, “the proposal as a “house of cards” and expresses concern that the Funds’ attempt to replicate the bitcoin futures markets, which are related to underlying cryptocurrencies that trade on unregulated exchanges, will lead to losses for retail investors, and that the inclusion of an inverse Fund will add to the risk.”
September will see a string of ETFs awaiting SEC approval. The first in line is GraniteShares, to be judged on September 15 which has filed two ETF proposals. The SEC’s decision is poised to affect the market prices of Bitcoin. The proposed Winklevoss ETF saw Bitcoin charts spike dragging other coin prices to the ceiling as well. This suggests that the investor community is eagerly waiting for a positive news from the commission but the SEC decision hangs in a cliffhanger.
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