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Bloomberg Analyst Says Bitcoin Futures ETF Will Be Approved By October

According to Bloomberg analyst Eric Balchunas, a Bitcoin futures ETF is likely to be approved by October. What does that mean for Bitcoin’s price moving forward?

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  • Bloomberg Analyst predicts Predicts Futures ETF To Arrive By October
  • Pivot To Futures ETF
  • How Will This Effect Bitcoin’s Price Target?

Bloomberg Analyst Predicts Futures ETF To Arrive By October

According to an investor note issued by Bloomberg, a Bitcoin Futures ETF is likely to be approved around October. Analyst for the outlet, Eric Balchunas, points to the fact that several prominent Ethereum applications were withdrawn recently.

“We think Ether withdrawal shows SEC has nose in this rn,” said Balchunas via Twitter. “And is in reg contact with issuers which should mean any kinks ironed out so that they can launch 75 days after filing.”

Balchunas also noted that the ProShares application is the most likely to be approved. Though, he added that, “…it could (and arguably should) be a group to avoid first mover advantage.”

Recommended read: Valkyrie Digital Assets Adds Algorand

However, Valkyrie Investments believes it has an inside track to be the first to be approved because of a regulatory quirk that apparently favours smaller companies.

Last week Balchunas argued that Ethereum applications were rejected because the SEC wants to roll out crypto ETFs slowly.

“As long we ONLY see the Ether ones ejected, I’d say that’s decent news for bitcoin ETF. Sort of like them saying, look, let’s baby step this, only bitcoin rn,” Balchunas said.

“Stop exciting the crypto trade pubs with all these filings.”

Recent Pivot To Bitcoin Futures ETF

The push for a futures ETF came after Gary Gensler announced that a futures ETF makes more sense because of Bitcoin’s status as a commodity. After all, Bitcoin futures are already regulated by the CFTC and investment banks like Goldman Sachs already have exposure to them via partners like Galaxy Digital. 

Nevertheless, there is some concern that the pivot will not interest retail investors who prefer investing in a physically backed Bitcoin ETF.

How Will This Effect Bitcoin’s Price Target?

In many ways, a Bitcoin ETF is crypto’s Moby Dick. And it’s likely that won’t change with a futures ETF.

“That said, the excitement will be only half that what it would be for a real bitcoin ETF,” Balchunas noted. A Bitcoin Futures ETF would tie the success of the ETF to the contract of the futures ETF. Meaning, that the success of the ETF will not directly correlate with the current price like the Canadian Purpose Bitcoin ETF does.

And it’s true, most investors will not prefer a physically backed Bitcoin ETF. That said, I think it’s definitely better than nothing. Not to mention, prefer doesn’t mean retail investors who can’t access Canadian ETFs will necessarily choose to stay on the sidelines completely.

It may not have the mooning effect that the original idea of what a Bitcoin ETF would have had, but that doesn’t mean it won’t help Bitcoin reach a new all time high, if and when it does get approved.

 

The post Bloomberg Analyst Says Bitcoin Futures ETF Will Be Approved By October appeared first on CryptosRus.

Read more: https://cryptosrus.com/bloomberg-analyst-says-bitcoin-futures-etf-will-be-approved-by-october/

Text source: CryptosRus

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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