The Crypto market is booming, and for the first time, it has surpassed $2 trillion. Due to this tremendous growth, speculations are high that the US will at some point approve exchange-traded funds (ETFs).
Eight years ago, the Winklevoss twins became the first ETF to seek approval from the US Securities Exchange Commission (SEC). Toward the end of July this year, ProFunds tried following the direction of SEC-approved Bitcoin ETF.
ProFunds, an asset manager, has launched its initial Bitcoin futures mutual funds. The platform is expected to hold only Bitcoin futures contracts or maybe become Canadian money markets instruments and ETFs.
A week later, SEC Chair Gary Gensler indicated his appreciation for a Bitcoin ETF with such strategy, further increasing ETF application.
As ETFs become among institutional and retail investors, many asset managers wish to launch cryptocurrency ETFs. ETFs have become a diversified, accessible and cheap, and cheaper way to gain market exposure.
The US is far much behind in crypto and Bitcoin ETF regulation including in SEC ranks. Countries like Sweden, Switzerland have already legalized exchange-traded products (ETPs), an investment tool that trades in any crypto exchange, but not necessarily an ETF.
Canada has recorded also recorded a boom of crypto funds after the approval of funds that include ETF BTCA, Evolve Bitcoin ETF, 3iQ CoinShares, and CI Galaxy Bitcoin ETF.
Regulators in Canada always surpass their counterparts in the US in various approval. For instance, Canada is fast approving future-based psychedelic and marijuana products.