SEC Approves Bitcoin ETF, Marking Historic Day for Crypto October 15 2021 - 06:36PM NEWSBTC
Since the first meteoric rise of Bitcoin in 2017, asset managers and investment firms have looked to seize the opportunity in the growing space, attempting to bring Bitcoin to Wall Street. Of course, the majority of these efforts (if not all) were futile – caused by waning demand during downturns, opposition from government entities, or the general uncertainty surrounding crypto’s future as an asset class. But now, with Bitcoin gaining approval from the public, institutions, and even nations like El Salvador, it only seems right for crypto to finally cement its legitimacy. Bitcoin ETF Finally Gains Approval from the SEC Earlier today, the Securities and Exchange Commission (SEC) finally announced that it had approved the first ever Bitcoin Futures ETF in the United States. This is following months of deliberation and delays, with the commission delaying its verdict on at least a dozen or more additional Bitcoin ETF applications. Proshares, the asset management firm that filed its Bitcoin Strategy ETF earlier this summer, is set to launch as early as next week. In its amended prospectus updated on Oct. 15, Proshares stated that its ETF is expected to launch on Monday, Oct. 18. Without a doubt, this is a historic moment for the cryptocurrency space. Serving as a regulated alternative to directly holding the underlying digital asset, an accessible Bitcoin ETF will mean an influx of funds from retail and institutional investors alike. ProShares’ Bitcoin ETF will function similarly to that of Grayscale’s GBTC, where the exchange traded fund will track Bitcoin futures, rather than the price of the Bitcoin directly. SEC Chair Gary Gensler stated that future-based products will likely provide stronger investor protections due to the stringent securities laws they must operate under. As a futures-based product, there may be potential premiums or discounts relative to the net asset value (NAV). However, the Proshares’ ETF has a management fee of 0.95%, which is considerably lower than GBTC’s 2%. This, coupled with GBTC’s stringent redemption periods and deviation from the NAV, will likely lead to a mass rotation of funds from the GBTC to ProShares’ ETF. Breaking Down Bitcoin’s Price Action The aforementioned news sent the crypto markets higher, with Bitcoin nearing its all-time high price of $63,000. Earlier today, the price of BTC peaked at $62,600. At press time, Bitcoin is priced at $61,300 – up 6.36% in the past 24 hours alone. According to CoinMarketCap, the major cryptocurrency has reclaimed its $1 trillion market capitalization, comfortably sitting at $1.15T. Ethereum and other major altcoins reacted positively to the news, closing in on their respective all-time high prices.
Dubai finance watchdog approves listing of Bitcoin fund The DFSA is establishing itself as an innovative regulator for the region by focusing on fintech and innovative technology. ARNOLD KIRIMI 5 HOURS AGO
The Bitcoin Fund (QBTCu.TO), a closed-end investment vehicle based in Canada, has received regulatory approval from the Dubai Financial Services Authority (DFSA). The fund debuted on Nasdaq on June 23, 2021, and became the first listed digital asset fund in the Middle East.
The fund’s goal is to provide investors with exposure to Bitcoin (BTC) and the daily price changes of Bitcoin in United States dollars, as well as long-term capital appreciation. The fund is a diversified portfolio of digital assets that invests in Bitcoin and U.S. dollar-denominated money market instruments.
A report by Trade Arabia states that the Bitcoin Fund is now in a position to list up to $200 million worth of units on Nasdaq Dubai, following its approval by the DFSA. This allows the region’s first crypto-based product, which is listed on a regulated platform, to satisfy growing demand from institutional investors. The Bitcoin Fund will be available to investors of all levels from big banks to individual traders.
Over the last four months, Bitcoin has surged in value, reaching a new all-time high of $66,000 this week. The world’s No. 1 digital currency is continuing to outperform expectations thanks to growing institutional adoption and renewed enthusiasm among retail investors.
Nasdaq Dubai is the first official stock exchange in the Middle East to offer this new service, which is part of its commitment to embracing fintech.
The DFSA is attempting to establish itself as an innovative regulator for the region by focusing on fresh technology and innovative financial solutions that may help drive economic growth. As reported by Cointelegraph, the DFSA recently announced new rules for crypto asset investments.
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