As expectations increase that a Bitcoin ETF will soon be approved in the US, more and more players in the finance sector are trying to join the majority. Bloomberg’s senior ETF analyst Eric Balchunas recently reported that Roundhill Investments, a financial company registered with the Securities and Exchange Commission (SEC), has applied for a Bitcoin-covered ETF (Bitcoin Covered Call ETF).
Roundhill Investments, a registered investment advisory firm specializing in groundbreaking ETF solutions, recently submitted an application to the SEC for a Bitcoin futures ETF, offering the Bitcoin Covered Call ETF, which is connected to buying and selling options for income.
As demonstrated in Roundhill Investments’ ETF application, financial players have been researching ways to effectively offer their institutional clients different ways to invest in Bitcoin. Responding to Blachunas’ tweet on the matter, participants in the cryptocurrency market argued that the SEC now needs to introduce clear regulations that allow people to buy BTC directly.
So far, the SEC’s reluctance to approve a spot Bitcoin ETF has forced financial players to launch investment products in the form of futures ETFs as temporary solutions. However, the crypto world is now waiting for a spot ETF that allows users to hold Bitcoin directly.
Current ETF Developments and Bitcoin
Amid positive developments regarding the spot Bitcoin ETF expected to be approved by the SEC in the coming months, the price of BTC has experienced a strong rally surpassing $35,000. Despite a partial retreat following this rally, the price of the largest cryptocurrency continues to stay above the $34,000 level.
SEC Chairman Gary Gensler recently confirmed that the Commission is reviewing 8-10 spot Bitcoin ETF applications. Gensler’s statement, which is considered a significant part of a major bull market signal, coincided with a notable increase in the value of Bitcoin and raised market participants’ expectations. ETF experts say that such an approach is being shown for the first time, highlighting the meticulous review process applied by SEC staff for spot Bitcoin ETFs.
On the other hand, experts have mixed views on how the price of BTC will react after the ETF approval. While some believe that the Bitcoin rally has already been priced in for the impending ETF approval, others believe that a significant amount of capital will flow into the Bitcoin ETF once it receives approval from the SEC.
