The U.S. Securities and Exchange Commission (SEC) has actually tweeted about buying funds that hold bitcoin futures agreements. This has sparked optimism within the crypto community that the regulator may soon approve bitcoin exchange-traded funds (ETFs), especially those investing in bitcoin futures.
Optimism Grows That SEC Will Approve a Bitcoin Futures ETF Soon
The authorities Twitter represent the SEC’s Office of Investor Education and Advocacy tweeted Thursday: “Before investing in a fund that holds bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.”
The tweet references an investor bulletin jointly 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 publication advises “investors considering a fund with exposure to the bitcoin futures market to weigh carefully the potential risks and benefits of the investment.”
Comments flooded Twitter from people speculating that the SEC will soon approve a bitcoin futures ETF. Many people simply exclaimed, “bullish.”
One Twitter user composed, “They probably wouldn’t post this if it wasn’t going to get approved.” Another commented, “Posting this would indicate with great likelihood a BTC ETF is coming, possibly next week.” A third person said, “This is a clear indication of what is to come very very soon.” As Bitcoin.com News reported, the SEC could approve several bitcoin strategy ETFs this month.
Bloomberg’s senior ETF expert, Eric Balchunas, believed:
Getting better: The SEC simply tweeted out an edu publication they composed back in June re bitcoin futures and ‘funds that hold bitcoin futures.’ Clearly good sign and we [are] upping our odds to 85%.
Balchunas pointed out another indication that a bitcoin ETF approval might impend. “Valkyrie just updated their bitcoin futures ETF prospectus (which typically only happens when ducks in row 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,” he tweeted Wednesday.
However, considering that the financier publication was released in June and the SEC tweeted a comparable message about buying funds holding bitcoin futures at that time, some individuals warned that Thursday’s tweet does not show a bitcoin ETF approval.
Economist and trader Alex Kruger noted: “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.”
Balchunas even more detailed that the last time the SEC tweeted this publication was on July 26, one day prior to the Profunds’ bitcoin technique shared fund “went effective” and 2 days prior to it released. He concluded that if the pattern holds, “Proshares ETF will be trading Mon or Tue (which was our prediction all along).”
The crypto community is enthusiastic that the SEC will authorize bitcoin futures ETFs considering that SEC Chairman Gary Gensler consistently showed that he is open to this type of financial investment. He also said that he looked forward to the staff’s review of bitcoin futures ETF filings.
