An ETF is a basket of securities, shares of which are sold on an exchange. They combine features and potential benefits similar to those of stocks, mutual funds, or bonds. Like individual stocks, ETF shares are traded at prices that change based on supply and demand throughout the day.
A week ago, Evolve launched Canada's multi-cryptocurrency ETF, and the US might also be following suit with its own Bitcoin ETF. The SEC has previously hinted it might be allowing a Cryptocurrency ETF very soon. It has also made remarks that assured Crypto investors that the SEC would not ban Crypto.
After a crackdown by China and a ban on all Cryptocurrency transactions, the Chinese central bank has spurred uncertainty as Crypto investors feared the SEC would take a similar approach. However, due to the recent assurance by the SEC, the market has regained its confidence.
The SEC also has several Bitcoin ETFs on its application list. The SEC could approve four ETFs just this month alone. SEC Chair Gary Gensler has also given optimistic signals that the regulator may accept these ETFs. If the ETFs are approved, the $6.7 Trillion US ETF industry might join the Crypto market.
As many as four futures ETFs might be added to Wall Street just in October, with another one expected in November. This week it also approved the Volt Crypto Industry Revolution and Tech ETF.
According to its prospectus, the actively managed product plans to invest most of its assets into companies "with exposure to Bitcoin and its supporting infrastructure". It's one of several efforts to provide investors with indirect access to cryptocurrencies.
It is anticipated that if the SEC follows its usual process, a product from ProShares could be first to get the regulator's blessing after the company was first to make the appropriate futures-based filing. This could happen as early as October 18th, 2021.
A healthy investment portfolio consists of at least 5-10% invested into speculative assets like Cryptocurrency. If an ETF is approved, this could add substantial value to the Cryptocurrency market. Hundreds of billions of dollars could be added to the Cryptocurrency market.
An ETF has been in pursuit for several years. However, with the Cryptocurrency market growing rapidly this year, the SEC may no longer be able to ignore the market anytime soon. Although an ETF approval is not yet guaranteed soon, most investors are still hopeful as the Cryptocurrency market grows.