The United States SEC (Securities and Exchange Commission) has finally approved a Bitcoin ETF or exchange-traded fund proposal, after years of waiting and total pending applications now running to over 30 in number. Although the ETF will invest in Bitcoin through futures contracts, it marks the first-ever Bitcoin-related ETF product to be approved by the regulator.

A Bitcoin ETF will enable a regulated medium for many interested wealthy investors and institutions to gain exposure to the leading crypto asset in a risk-mitigated manner.  

ProShares’ Bitcoin ETF Now Approved

On Friday, ProShares published a post-effective amended prospectus noting that the SEC has greenlighted the launch of its “Bitcoin Strategy ETF.” This Bitcoin ETF will not directly track the price movements of the largest cryptocurrency. However, it will be connected to BTC futures contracts.

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SEC Chairman Gary Gensler recently admitted that Bitcoin futures-tied ETFs are likely to be approved a lot easier, as they provide more protections for investors given the existing regulations around them. Many companies are now filing for similar products in this direction, and it’s expected that the regular will approve at least two more Bitcoin futures ETFs later this month.

The Herd is Coming

Having received the green light from SEC, ProShares plans to debut its Bitcoin ETF starting next week, although trading may not begin immediately. While commenting on this, ETFStore President Nate Geraci noted that:

“It’s an encouraging sign for the future of crypto to see SEC Chairman Gensler get comfortable in helping mainstream investors more easily access bitcoin exposure. The availability of a bitcoin ETF will now bring more investors under the crypto tent and facilitate greater education across the space.”

Some applications have been turned down by the regulator, while 30 applications are currently pending with them. Many people believe the approval of ProShares Bitcoin ETF opens the door to more US ETFs in the crypto market.