‘Watershed moment for cryptocurrencies’: US to allow Bitcoin trading from next week

Bitcoin futures exchange-traded fund (ETF) is set to begin trading in the US from the next week.

This follows reports that United States Securities and Exchange Commission (SEC) is mulling to allow ETF trading. Bloomberg quoting sources said the move comes after close to a decade-long push from the $6.7 trillion ETF industry.

It could be a “watershed moment” for cryptocurrencies. Sources said the SEC was not “likely to block the products from starting trade next week”.

Notably, the SEC has previously blocked Bitcoin ETF applications. SEC Chairman Gary Gensler said the current proposals from ProShares and Invesco are futures contracts based and filed under mutual fund (MF) rules which “provide significant investor protections”, the report added.The SEC and ProShares did not respond to Bloomberg’s queries.

Bitcoin is around $58,800 (above Rs 45 lakh) – its highest since May and holds market dominance of 45.86 percent. The first Bitcoin ETF was filed in 2013 by Cameron and Tyler Winklevoss, of Facebook founders’ fame.

Since then, “false signs of progress and outright rejections” due to “investor hazards, threat from hackers, and drastic price swings” have caused a setback to the ETF industry’s push for introducing crypto in the sector.

The report noted that many were happy when Gensler assumed post as he previously expressed interest in crypto. The “mood” the report said, shifted in August when the SEC chief said he would “favor funds based on CME-traded Bitcoin futures filed under a 1940s law”.