Will the SEC allow the first US bitcoin futures exchange-traded fund?

The Securities and Exchange Commission is poised to allow the first U.S. Bitcoin futures exchange-traded fund to begin trading in a watershed moment for the cryptocurrency industry, according to people familiar with the matter.

Are bitcoin ETFs based on futures contracts?

Unlike Bitcoin ETF applications that the regulator has previously rejected, the proposals by ProShares and Invesco Ltd. are based on futures contracts and were filed under mutual fund rules that SEC Chairman Gary Gensler has said provide “significant investor protections.”

Does SEC need to formally approve ETF applications?

As noted lower down, SEC does not need to formally approve ETF applications. UPDATE (Oct. 16, 2021, 14:01 UTC): Adds “futures” to headline and first sentence for sake of specificity. UPDATE (Oct. 16, 2021, 14:01 UTC): Adds “futures” to headline and first sentence for sake of specificity.

Will Bitcoin Futures track the price of bitcoin?

The first product will track bitcoin futures, rather than the price of bitcoin directly, however. SEC Chair Gary Gensler indicated he believes futures-based products might provide stronger investor protections due to the laws under which they operate.