History is Made – the SEC Approves Its First Bitcoin Futures ETF

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Every crypto investor and fan knows that the SEC is pretty strict regarding Bitcoin and crypto rules. It’s hellbent on destroying crypto exchanges that don’t play nice, and has already opened investigation against the two biggest ones. That’s why the latest news surrounding the SEC came as a surprise, when a spokesperson for the securities watchdog announced the approval of its first Bitcoin futures ETF.

The new Bitcoin exchanges-traded fun is called Volatility Shares 2x Bitcoin Strategy, or BITX for short. It was launched in Chicago at the Chicago Board Options BZX Exchange on June 27. On this day, history was made, and due to the SEC’s move, Bitcoin witnessed a price rise.

A Significant Move

All crypto experts are adamant – the move by SEC is historic and more significant than anyone thinks. We’d call it groundbreaking as it’s the first futures ETF of its kind in the USA. For those unaware, ETF—or exchange-traded fund—is an investment vehicle that tracks the performance of certain assets, in this case Bitcoin. SEC’s ETF has leveraged strategy and aims to amplify Bitcoin returns by double. This will be achieved by the use of financial derivatives and similar instruments, allowing investors to benefit from Bitcoin’s price volatility.

Why did the SEC approve its first Bitcoin futures ETF? Many believe it’s because of BlackRock’s initiative to introduce Bitcoin Spot ETFs. BlackRock is one of the world’s biggest asset management firms that oversees assets worth around $10 million. The company recently filed an application for a Bitcoin Spot ETF which falls under the iShares unit. Coinbase will serve as the custodian for the trust’s Bitcoin holdings.

The SEC will most likely approve BlackRock’s request soon. It also went and did the same, which goes against everything the watchdog stands for. Its recent actions confirm it. Whether it’s the Coinbase situation or the hunt for Binance, the Securities and Exchange Commission is not in favor of cryptocurrencies. The good news is that its latest action has definitely had a positive impact on the market, spiking gauge in Bitcoin and moving the price up as a result.

A Breath of Fresh Air

No matter what you think of the SEC and its decisions, approving a Bitcoin futures ETF is definitely a breath of fresh air in the industry. That goes double when you know that the SEC has just recently sued the two biggest crypto exchanges. But, with BlackRock trying to shake things up with a Bitcoin ETF request and the SEC doing the same, maybe we’re starting to see positive developments. While it’s a bit early to tell, the news is encouraging for investors and overall, the crypto market.

It remains to be seen how it impacts the price of cryptocurrencies in the long run. For now, it has managed to get Bitcoin’s price slightly up. Positive news always do so, even if the velocity of transactions is notably slower, showing that investors are holding onto their coins.

June 28, 2023: • No Comments

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