‘Uptober’ Unravels With Groundbreaking Bitcoin ETFs As BTC Breaks New Highs — What’s Still In Store For October?

By ZyCrypto - 1 month ago - Reading Time: 2 minutes

‘Uptober’ Unravels With Groundbreaking Bitcoin ETFs As BTC Breaks New Highs — What’s Still In Store For October?

The SEC has given the nod for the first Bitcoin ETF to open its door to potential investors after eight long years. Several analysts tipped October to be the month that could see approval from the commission.

Bitcoin ETF Isn’t A Specter, It’s Real

Cryptocurrency investors felt sheer ecstasy when word broke out that the Securities and Exchange Commission had approved the first Bitcoin ETF. The SEC’s five Commissioners met on Friday and gave a positive affirmation towards their approval and the application from Proshares was the first to be launched.

The firm filed a post-effective amended prospectus on October 15th of which the wording indicated that the fund would launch on October 18th but may not begin to be traded immediately. It should be noted that the amended filing ProShares eliminated the fact that it could invest in the Canadian bitcoin ETFs to act as a buffer.

“It seems the SEC really did not like that language for whatever reason. But they are following standard guidelines and allowing first to file to launch first. So we will be tracking closely how much of a first-mover advantage there is,” says James Seyffart, an analyst at Bloomberg Intelligence.

Following ProShares ETF debut, a host of other applications are poised to be approved including those from Invesco and Valkyrie. The fund is called the ProShares Bitcoin Strategy ETF and is designed to track bitcoin futures over actual bitcoin itself.

October Call Was Spot On

A few months ago, it seemed unlikely that the community could get a Bitcoin ETF given the slew of rejections handed out by the SEC in the past. A change occurred after Gary Gensler took the helm of affairs at the Commission, raising whispers of a friendly disposition to cryptocurrencies.

Gensler’s comments about the possibility of a bitcoin futures ETF injected renewed vigor for new applications. He cited the need for increased investor protection as the motivating factor to tilt toward a futures-based ETF. While a certain demographic may see the approval as a stepping stone, there are several others that don’t believe in the efficacy of a futures-based ETF.

Matthew Sigel of VanECK said his firm sees bitcoin-futures as inferior products. “What the SEC seems to be doing is pushing individual investors into higher risk, lower quality products to get their Bitcoin exposure instead of sticking with the tried-and-true ETF wrapper,” he asserted.

Several analysts had previously tipped October as the month to welcome the bitcoin ETF including James Seyffart, Eric Balchunas, and Mike McGlone of Bloomberg. Already, Bitcoin is trading over $65,000 and has gained an impressive 25% over the last week, while riding on the waves of the ETF buzz.

Original source: ZyCrypto