Skip to content
DWT logo
People Expertise Insights
About Locations Careers
Search
People
Expertise
Insights
About
Locations
Careers
Search
Publications
Financial Services

"First Bitcoin Futures ETF Set to Launch," Blockchain Law Center

By  Michael P. McDonald
10.18.21
Share
Print this page

On October 19, 2021, the first U.S. Bitcoin-focused exchange-traded fund ("ETF") will begin trading with approval from the Securities & Exchange Commission ("SEC"). The newly launched Bitcoin ETF is being issued by ProShares and tracks the Bitcoin futures market. With three other Bitcoin futures ETFs expected to launch later this month, ProShares will be the first of the Bitcoin ETFs to trade. ProShares and other issuers have been trying for years to get Bitcoin ETFs traded on U.S. exchanges and until now had been unsuccessful in their applications to regulators.

Prior to granting its approval, the SEC had explicitly rejected Bitcoin-focused ETFs because of what the Commission viewed as the immaturity of the industry and its potential to be subjected to market manipulation. However, in August 2021, SEC Chairman Gary Gensler made remarks signaling he would be open to approving Bitcoin futures ETFs. Chair Gensler offered that such ETFs offered stronger investor protections because they would be subject to regulation under the Investment Company Act of 1940. Perhaps as a result of those comments, recent months saw an increase of applications of Bitcoin futures ETFs, as opposed to ETFs linked to the spot market for Bitcoin, culminating in approval for ProShares' launch on Tuesday, October 19. This is a significant step for the crypto-focused investment industry, and we anticipate more to come.

DISCLAIMER: This article was originally published by McGonigle PC prior to their combination with Davis Wright Tremaine LLP.  The article is published here with permission.

Related Articles

DWT logo
©1996-2022 Davis Wright Tremaine LLP. ALL RIGHTS RESERVED. Attorney Advertising. Prior results do not guarantee a similar outcome.
NAVIGATE
Home People Expertise Insights
About Locations Careers Events Blogs
STAY CONNECTED

Subscribe to stay informed.

Subscribe
Employees
DWT Collaborate
EEO
Affiliations
Legal notices
Privacy policy
©1996-2022 Davis Wright Tremaine LLP. ALL RIGHTS RESERVED. Attorney Advertising. Prior results do not guarantee a similar outcome.
Close
Close

CAUTION - Before you proceed, please note: By clicking “accept” you agree that our review of the information contained in your e-mail and any attachments will not create an attorney-client relationship, and will not prevent any lawyer in our firm from representing a party in any matter where that information is relevant, even if you submitted the information in good faith to retain us.