How will ProShares ETF SEC Decision impact the market?


The financial watchdog of the US markets, the Securities and Exchange Commission (SEC) is about to either approve or disapprove a Bitcoin ETF this Thursday. How will ProShares ETF SEC decision impact the market?

21 August, AtoZ MarketsJust about a month ago, the US Securities and Exchange Commission (SEC) has delayed a decision on one of the proposed Bitcoin exchange-traded funds. Now, this Thursday, the regulator is about to make a decision regarding the other pair of ETFs. 

SEC to Make a Deicison on ProShares ETF Proposal

This time, the US regulator is set to make either approve or disapprove ProShares Bitcoin ETF and the ProShares Short Bitcoin ETF. On August 23, all cryptocurrency market participants will be watching the US watchdog closely. 

As a matter of fact, this time, the SEC cannot postpone the decision under its rules. The proposal has been filed by ProShares in conjunction with NYSE Arca earlier last December. These proposals are supported by Bitcoin futures contracts and not the physical holdings of BTC itself. Speaking differently, the ETF’s value would be determined by the Bitcoin futures contracts trading on CME and CBOE Futures Exchanges. 

ProShares have originally suggested the futures-underpinned ETFs back in September 2017.

Yet, at that time, the company noted that the futures market was too immature and “there can be no assurance that an active trading market for Bitcoin futures contracts will develop or be maintained,” according to the filing. Then, the ProShares trust has asked the SEC to withdraw a proposed rule change on December 19, 2017. This step has further outlined the ProShares Bitcoin and Short Bitcoin ETFs, as well as the ProShares Bitcoin Futures/Equity Strategy ETF and the ProShares Bitcoin/Blockchain Strategy ETF.

How will ProShares ETF SEC Decision impact the market?

7Markets co-founder Yagub Rahimov has shared his outlook regarding the upcoming ETFs decisions and how they might affect the cryptocurrency market. 

Have a watch!

Noteworthy, to date, the SEC has only declined or delayed Bitcoin ETF proposals. The latest SEC decision has been the rejection order for the Gemini founders, Winklevoss brothers. 

Think we missed something? Let us know in the comments section below. 

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