Cryptocurrency Community in Frenzy Following Possible Indication of BTC ETF Approval by SEC

The US SEC triggered a frenzied reaction in the Bitcoin and cryptocurrency community yesterday, following a tweet by its official handle about investing in funds that hold Bitcoin futures contracts. The account (@SEC_Investor_Ed) tweeted that: “Before investing in a fund that holds bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.”

The tweet cited an investor bulletin published in June by the SEC’s Office of Investor Education and Advocacy and the Commodity Futures Trading Commission’s (CFTC’s) Office of Customer Education and Outreach. The bulletin urged that: “investors considering a fund with exposure to the bitcoin futures market to weigh carefully the potential risks and benefits of the investment.”

The recent tweet by the Commission raised optimism in spectators that the watchdog could approve a Bitcoin futures ETF soon. Reports show that the SEC should approve several Bitcoin strategy ETFs this month.

Commenting on the possible ETF approval, senior ETF analyst at Bloomberg Eric Balchunas noted that:

“Getting closer: The SEC just tweeted out an Edu bulletin they wrote back in June re bitcoin futures and ‘funds that hold bitcoin futures. Clearly [a] good sign, and we [are] upping our odds to 85%.”

Balchunas further noted that another sign that an ETF could get approved soon is that “Valkyrie just updated their bitcoin futures ETF prospectus (which typically only happens when ducks in [a] row [are] ready for launch). They added their ticker $BTF, altho no fee still. Can’t say this is done deal type evidence but a good sign IMO.”

Some Cryptocurrency Community Member Remain Skeptical Over BTC ETF Approval

However, some spectators cautioned that the SEC’s recent tweet might not necessarily indicate a BTC ETF approval citing a similar tweet by the Commission in June.

Economist and crypto analyst Alex Kruger opined that: “Market interpreting this SEC post as odds of bitcoin futures ETF increased dramatically but note, the SEC had posted the same thing back in June.”

Nonetheless, the crypto community is optimistic that the watchdog will approve the pending BTC ETFs considering that SEC Chair Gary Gensler has indicated his openness to the idea of it.

 

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