US SEC Gets Another Bitcoin ETF Application
More than a dozen applications for Bitcoin ETF have been made to the US SEC, none of which has been approved thus far. Joining the horde of US ETF requests is the latest filing from investment manager, AdvisorShares. However, its application to the US SEC is for a BTC Futures ETF.
Already, the Maryland-based asset manager has a slew of exchange-traded funds (ETFs) including crypto-based ETFs that it offers to institutional investors. The filing made to the US SEC stated that AdvisorShares was the ETF was aimed at investing all or a substantial part of its assets in ETF contracts on BTC Futures and related investment offerings.
AdvisorShares To Offer Indirect Exposure to Bitcoin Futures
AdvisorShares also revealed its intention to venture into ETP and ETFs in other regions apart from the US. In addition, it reiterated that it will not make a direct investment into Bitcoin. Instead, in line with provisions of its prospectus, its focus will be on an indirect exposure to Bitcoin Futures, via an arm of the company established under the laws of Cayman Islands.
In another news, AdvisorShares signed a partnership deal with capital management company Morgan Creek, which will function as the former’s ETF venture micro advisor. As part of its responsibilities, Morgan Creek’s research team will help the asset manager to execute its investment plans. Precisely, it will assist in allotting assets of the funds and also analyse the potential price trend of Bitcoin.
US SEC Swathed By ETF Applications
Meanwhile, 2021 is a year of ETF filings for the US, even though regulators are hesitant on approving any of them. Since the start of August, the US SEC has received five ETF applications plus the latest one from AdvisorShares. Three are notably Bitcoin ETFs just like the majority of past applications while two others are Ethereum futures ETFs.
Interestingly, the two Ether futures ETF applications were withdrawn on Friday. VanEck and Proshares had each submitted separate applications to the US SEC on Wednesday. Speculations on the reason for the ETF withdrawals have tended towards the unwillingness of the US SEC to approve an ETF. Moreover, since the US SEC is yet to attend to Bitcoin ETF applications, it is unlikely that it would give face to the Ether futures contracts ETF applications by the two asset managers.
A potential ETF approval may surface this year if regulators deliberate on a recent ETF application made by Galaxy Digital. The Mike Novogratz-owned asset management firm filed its latest Bitcoin ETF under the 1940 Act, which offers adequate protection to investors.
Earlier in August, head of the US SEC, Gary Gensler touted the Act as a strong umbrella for investors. Galaxy Digital has already declared that the regulatory body has no choice but to approve its latest application, which ranks as the fifth. Numerous applications, even from last year, are pending before the US SEC.
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