Bitcoin ETF gets approval from SEC, marks cryptocurrency or historical day

Since the first meteor rise of Bitcoin in 2017, asset managers and investment firms have been trying to seize the opportunity in the growing space, trying to bring cryptocurrency to Wall Street. Of course, the lion’s share of these efforts (if not all) were in vain – due to declining demand during the recession, opposition to government agencies, or general uncertainty surrounding the future of crypto as a resource class. But now, with Bitcoin getting approval from the public, institutions and even countries like El Salvador, it seems right for crypto to finally cement its legitimacy.

ProShares’ Bitcoin ETF is approved by the SEC

Earlier today, the Securities and Exchange Commission (SEC) finally announced that it had approved the first Bitcoin Futures ETF in the United States. The commission delayed ruling on at least a dozen or more Bitcoin ETF applications, after months of negotiations and delays. Processes, an asset management company that filed ETFs earlier this summer, are set to launch early next week. Inside it Revised prospectus Updated October 15, Processors said the ETF is expected to launch on Monday, October 18th.

Undoubtedly, this is a historic moment for cryptocurrency space. To serve as a regulated option for holding directly underlying digital assets, an accessible exchange-traded fund means the arrival of funds from retail and institutional investors.

ProShares ’Bitcoin ETF will work in the same way as Grayscale’s GBTC, where ETFs will directly track Bitcoin futures rather than the value of digital assets. SEC Chairman Gary Gensler said futures-based products will likely provide protection to their strongest investors under strict securities laws.

As a futures-based product, there may be potential premiums or discounts compared to the net asset value (NAV). However, Proshares’ ETF management fee is 0.95%, which is significantly lower than GBTC’s 2%. This, along with the GBTC’s strict redemption period and deviation from the NAV, will probably lead to a massive rotation of the ETF funds from GBTC to ProShare.

Bitcoin price action broke

The aforementioned news sent the crypto markets higher, with BTC hovering near its all-time high of $ 63,000. Earlier today, the price of BTC reached $ 62,600. At press time, the price of BTC was $ 61,300 – up 6.36% in the last 24 hours alone.

Following the news of the first ETF approval of Bitcoin in the United States, investors were happy to gather to close the ATH price of Bitcoin (BTC / USD). Source:

According to CoinMarketCap, the major cryptocurrency has recovered its 1 1 trillion market capitalization, sitting comfortably at 1.15T. Ethereum and other major Altcoins responded positively to the news, closing their respective all-time highs.

Featured image from UnSplash

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