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Exchange-traded funds follow an index or group of assets but trade as equity securities. The approval of one could bring a wave of institutional buyers and, given that the bitcoin has a fixed supply, theoretically raises prices.
Hunter Horsley, CEO of Bitwise Asset Management, who presented his ETF proposal to the SEC in June, said investors should not read Thursday's deadline
"A SEC filing that hits a deadline is a reality procedural – it does not change the chances of it being approved, but it draws our attention to it, "said Horsley. "Just because we have reached the deadline does not necessarily provide any indication that the SEC has changed its tone."
Bitcoin prices in distress exceeded the other SEC deadlines for ETFs this summer. The cryptocurrency rallied to 20%, above $ 8,000, at the end of July for rumors that another ETF, proposed by VanEck, would be approved in August. This decision was later postponed by the agency.
This week, price moves have been more subtle. The cryptocurrency is increased by about 3% up to a maximum of $ 6,858.61, according to CoinDesk data. Bitcoin is still declining by over 50% this year and over 65% from its nearly $ 20,000 highs.
Brian Kelly, CEO and founder of BKCM, said that investors are becoming more cautious and have stopped betting well ahead of these SEC deadlines.
"My opinion is still [that] this is not approved tomorrow, but I feel that we are taking big steps and getting closer", said Kelly. "There's a better chance that it will be approved more than anything else."
One reason why the ETF ProShares might be more attractive to regulators is because it is based on futures trading. The agency cited the lack of regulation in bitcoin exchanges. But bitcoin futures exchange on the regulated CBOE SEC.
