As we've noted before, the company's ETF is tied to bitcoin futures contracts rather than directly to the current price of the cryptocurrency, but the very fact that it has been approved still represents a landmark moment for the crypto industry. As a reminder, an exchange-traded fund (ETF) is an investment product that tracks the value of an underlying asset and is traded on a stock exchange. This means that an ETF can be bought and sold during normal market hours and can also be included in pension and savings plans. In other words, adopting an ETF makes it much easier for large investors to capitalize on BTC price movements.

In addition, ordinary people without knowledge of blockchain technology will also be able to join digital currency investments. They won’t have to be responsible for storing the coins themselves – the trading platform will do that – and they won’t have to risk their savings. Therefore, they will not have to worry about hacker activity and possible theft of crypto-assets.

Previous attempts to get Bitcoin ETFs approved in the US have failed

Accordingly, the importance of ETF approval in the US is due to the fact that a huge number of investors will now be able to interact with instruments that are linked to the first cryptocurrency. Which means Bitcoin and the digital asset niche in general are in for an influx of funds - and they're sure to impact the value of the coins.

What does it mean to approve a Bitcoin ETF

Note that the SEC has not formally given its approval for an ETF listing. That said, there is a clause in the regulator’s rules that if it does not reject the application for the relevant investment product within 75 days, it is automatically considered approved. Therefore, Proshares’ ETF will be listed on the NYSE Arca trading platform as early as today, according to The Block.

Bitcoin price rises on expectations of ETF adoption


In addition, the Securities and Exchange Commission's website itself mentions the relevant investment product. You can check it out at the link.


Mention of Bitcoin-ETF on the SEC website

Many experts have previously stated that the adoption of a Bitcoin futures ETF means far less to the industry than the registration of the same exchange-traded fund, but for the spot price of the cryptocurrency. Some even speculate that the ETF listing will be another reason for the crypto market to collapse.

As a reminder, spot prices are the actual prices of a cryptocurrency at the moment. Futures, on the other hand, allow you to bet on a certain value of an asset at a certain date, which opens up room for speculation and makes the situation irrelevant and up-to-date.

As Decrypt points out, even more firms than ProShares are waiting to approve their own ETFs. Billionaire Mike Novogratz’s Galaxy Digital fund and Katie Wood’s ARK Invest are among them. Two more BTC futures ETFs could hit the market by the end of October, as the SEC runs out of time to approve proposals from VanEck and Valkyrie.

Warning on the SEC’s Twitter account about the risks of investing in Bitcoin

The approval of a Bitcoin exchange-traded fund in the US has been an anticipated event for the market for several years now. Many investors have been buying coins in advance just for the day. Hence the question arises: what exactly will be the behaviour of the Bitcoin price and the entire crypto market this week? Given the sad experience of Coinbase IPO, which was also expected, but after that BTC price went for a long correction, we recommend to carefully consider all bitcoin buying risks in the near term.

However, it is fair to say that the market was overheated then and altcoins had managed to bring in a lot of “X’s” by that time. At the same time, now the coin niche is just recovering from the May and summer collapses, with many coins seriously lagging behind their historical highs. Therefore, there is a chance that this event will really only be a powerful catalyst for growth in the industry.

Growth of Bitcoin and other cryptocurrencies

Bitcoin in particular is at least $2,000 behind its all-time high. Today, the cryptocurrency is trading at $62,386. That said, the rate dipped below the $59,000 mark tonight – albeit briefly.

15-minute chart of Bitcoin


We think the role of the first Bitcoin ETF in the US is incredible. First of all, the approval of such an instrument will improve the reputation of cryptocurrencies around the world for investors who still don't trust digital assets. In addition, a huge amount of capital owners will now be able to channel their capital into crypto. And that will surely be able to complement the current bullpen, which is turning out great as it is.


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