Thursday, May 23, 2024

Gensler Restates His Backing for Bitcoin ETFs Based on Futures.

The Chairman of the Securities and Exchange Commission, Gary Gensler, restated his support for ETFs exchanged through Bitcoin traded funds on Wednesday. He revealed that he believed that these ETFs would lead to investments in future contracts instead of direct investments into crypto itself.

The Chairman of the SEC chose Bitcoin-based ETFs, that are used to invest in future contracts. These contracts are traded on the Chicago Mercantile Exchange. These are registered under the Investments Company Act of 1940, which is known for providing a lot of protection to investors. He continued to say that he was looking forward to his staff’s review of his fillings.

Gensler Support for ETFs

Previously, in August, Gensler had said similar things when he started a rush for futures based on Bitcoin fillings. So far, the SEC has not approved these. However, observers have said that they’re expecting a decision to be made by October.

The SEC is currently reviewing nearly twenty-four filings for ETF. These are for Bitcoin, products related to futures, as well as Bitcoin futures. Investors, however, haven’t shown a huge tush to file for products linked to Bitcoin futures. Despite this, Gensler reiterated his support for Bitcoin future ETFs.

Bitcoin Futures and ETFs

A tweet from user Eric Balchunas revealed that Bitcoin futures related to mutual funds have already amassed nearly $15 million in assets. This happened within two months of its launch. Balchunas is an analyst working for Bloomberg. The support for Bitcoin ETF futures predicts that the stablecoin will sustain itself in the long run.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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