TL;DR Breakdown
- The SEC shows indications of finally warming up to Bitcoin ETFs connected to futures contracts.
- Bitcoin and Ethereum prices surge after a report on this possibility.
According to a report released by Bloomberg on October 15, the U.S. Securities and Exchange Commission might be prepared to allow Bitcoin futures ETFs. From the beginning of next week, the regulatory authority could give light on the matter. The news comes after several indications by the SEC to venture into the possibilities surrounding BTC ETF future contracts.
The step is an excellent boost to Bitcoin prices, considering the commission’s past reluctance to the same. Crypto enthusiasts see this as a significant step in the progression of crypto adoption. It is crucial to understand that the SEC is not endorsing Bitcoin ETFs but BTC futures ETFs.
Two investment companies, ProShares and Invesco, put forth their request to engage with futures contracts, which are their area of expertise. As per anonymous sources, the SEC will probably hold off on inhibiting this process as deadlines approach.
All the same, this victory shows a warming up of the commission to cryptocurrencies, a much-awaited stepping stone for its adoption. Furthermore, it gives top investors hope of more gateways to open with the SEC’s help.
Bitcoin prices booming after the announcement
According to recent BTC charts, the coin has seen a 2.5% upsurge since the SEC announced its decision. It placed the king coin at over $57 000, nearing its all-time high of $64 000 earlier in the year. At the time of writing, BTC is trading at $60 196.81, up by over 5% today. The boom did not affect the top cryptocurrency as Ethereum followed suit with about 4% today.
Despite the SEC lacking a clear statement on the issue, the market indicators give investors hope of more to come. The crypto community hopes for a more remarkable surge if the SEC goes through with the current expectations.
Earlier speculations of the SEC being against crypto
The crypto regulator has been under a lot of criticism for its moves against crypto companies. However, President Joe Biden’s appointment of Gary Gensler as SEC’s chairman showed that his governance would positively impact the crypto sector. Furthermore, the commission’s move to allow banks to handle crypto transactions indicated a bright future for the crypto community.
Nonetheless, crypto enthusiasts think that the SEC could do better to support the growing sector. Its involvement in several court cases with exchanges like Poloniex has been reason enough for its regulations’ skepticism. Another notable incident is its threats against top crypto exchanges Coinbase, introducing increased interest for crypto-asset holders.
Notably, SEC commissioner Hester Pierce has been the voice supporting crypto projects up to date. Moreover, she has constantly pointed out the lack of clear regulations surrounding crypto. In one of her announcements, she stated that the next step to ensuring a well-regulated crypto environment would require the commission to step up on its end.
