Gary Gensler confirms conditions under which SEC will approve bitcoin-ETF

October 12, 2021

Gary Gensler confirms conditions under which SEC will approve bitcoin-ETF

The SEC will consider applications to launch bitcoin-ETFs if they are based on Chicago Mercantile Exchange futures and comply with the Investment Company Act of 1940. Commission chief Gary Gensler said.

"I am looking forward to the staff reviewing such applications," he shared with an audience at a conference organised by the Financial Times.

The official said such criteria had been put forward in August.

Valkyrie Investments, VanEck, Invesco, ProShares, Galaxy Digital and AdvisorShares have submitted applications to launch bitcoin-based exchange-traded funds under these guidelines in recent months.

According to Bloomberg senior ETF analyst Eric Balchunas, the mentioned structure is unpopular with investors. For example, a bitcoin futures-based mutual fund raised just $15 million in the two months since launch, compared with 27 times that of a physically-backed ETF in Canada.

The Bitcoin futures mutual fund that launched 2mo ago only has $15m in aum, VERY LOW considering the pent up demand. Here's a look at first 43 days of $BTCFX vs $BTCC (physical) in Canada (whose mkt is 27x smaller btw). Not sure if MF or futures is problem but poss bad sign..

Earlier, Balchunas and his colleague James Seyffarth pointed out the shortcomings of the SEC's preferred option for a bitcoin-ETF.

As a reminder, in August, Bloomberg experts predicted that the Commission would approve a bitcoin-ETF by the end of October. The experts named ProShares' bid as the favorite.

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About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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