Bitcoin ETF Proposals In The US Pick Up Pace With New Regulatory Filings

Bitcoin ETF Proposals In The US Pick Up Pace With New Regulatory Filings
JPMorgan Strategists: A Crypto ETF Approval Would Cannibalize Bitcoin’s Price
  • The chances of a Bitcoin ETF in the US have been significantly increased in the face of new filings from firms.
  • Filings from Amplify, Invesco, and Galaxy Digital are the latest cryptocurrency ETF bids submitted to the SEC.
  • The US currently plays second fiddle to Canada, which launched its bitcoin ETF early this year.

The air is rife with optimism that cryptocurrency ETFs might become a thing amid renewed interest in the space. Firms are filing applications with the US SEC and the latest from Amplify, Invesco and Galaxy Digital form part of a long list of applications that the Commission will have to review.

Amplify, Invesco and Galaxy Digital Take The Bull By The Horn

Invesco and Galaxy Digital teamed up to file a joint application for a physically-backed bitcoin ETF that will track the target index by holding all or a fraction of the underlying asset. Invesco, an investment managing company has filed for a futures-linked bitcoin ETF in the past with a ruling slated for October. This latest filing may be construed as Invesco playing it safe by not putting their eggs in one basket.

On the other hand, the application by Amplify is an encompassing one as it aims for a decentralized finance and crypto ETF. The far-reaching nature of this type of ETF will allow Amplify to invest in bitcoin futures and firms that have over 50% of their holdings in bitcoin and ether. The filing disclosed that the firm will invest 15% of its total assets in Grayscale Bitcoin Trust (GBTC) and Canadian bitcoin ETF investing in bitcoin.

Although Amplify is yet to fill in the role of a bitcoin custodian, optimism is at an all-time high for the approval of such an ETF.

Is The US Ready For A Bitcoin ETF

After a series of rejections by the SEC, the community began to lose faith in the fact that a Bitcoin ETF could become a reality. Bloomberg’s analyst, Mike McGlone stated that the first US Bitcoin ETF is within sight. He made this known in an interview with Daniela Cambone, stating that this could “potentially happen in October”.

SEC Chair Gary Gensler hinted that the most likely type of crypto ETF to be approved is a futures-backed ETF over a physically-backed ETF. McGlone shares a similar stance with the head of the SEC and believes that a futures-backed ETF would create a window for “massive amounts of money inflow.” He also noted that the lawmakers would want to rein the capital outflows out of the country to Canada given the success of their Bitcoin ETF experiment.