Bitcoin Lending Platform BlockFi Files for Bitcoin ETF

BlockFi– a leading cryptocurrency lending institution– has recently filed for a Bitcoin Futures ETF with the SEC. Their request comes amidst growing excitement that the US could approve a Bitcoin ETF by the end of October.

Blockfi’s Bitcoin Strategy ETF

BlockFi’s proposed ETF would be listed on the Cboe BZX exchange, according to the company’s filing today. It seeks to purchase cash-settled Bitcoin futures contracts on the CME to accumulate capital. It would also invest in short-term fixed-income securities, alongside “cash and cash-equivalent investments.”

“The Fund will not invest directly in Bitcoin,” reads the filing. Instead, the capital that the fund accumulated should provide 100% backing for its futures contracts indirectly. Exchange Traded Concepts, LLC, would serve as the fund’s investment adviser and manager.

In bold letters, the filing also offers a warning about Bitcoin’s volatility.

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Bitcoin and Bitcoin Futures are a relatively new asset class and are subject to unique and substantial risks, including the risk that the value of the Fund’s investments could decline rapidly, including to zero. Bitcoin and Bitcoin Futures have historically been more volatile than traditional asset classes. You should prepare to lose your entire investment.

The lending platform is one of the latest to join the institutional race to implement a Bitcoin ETF. According to some analysts from Bloomberg, such an ETF is likely to be approved soon. James Seyffart “can’t imagine” that SEC chairman Gary Gensler will deny all incoming proposals this month.

Will The SEC Approve?

A great deal lies on the SEC’s actions– or lack thereof– regarding a Bitcoin ETF approval in the coming weeks. While Bitcoin’s price begins to surge this October, an ETF approval could provide the catalyst needed to reach $100K and beyond.

So far, the SEC has been slow and cautious regarding crypto ETF approval– especially compared to their Canadian counterparts. The commission delayed the approval of four ETFs last week. Meanwhile, Canada has approved multiple Bitcoin ETFs now, including a multi-crypto BTC/ ETH ETF.

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Gary Gensler– chairman of the Securities and Exchange Commission– has suggested that a Futures ETF would have better approval odds. He is favorable towards the market manipulation protections a futures ETF could have while traded on the CME. BlockFi falls under this category and seeks protection under the 1940 investment company act. This could give the company a more substantial chance at approval.