The U.S. Securities and Exchange Commission’s investor education office on Thursday caused a stir among bitcoin fans after it sent out a tweet warning investors to weigh the risks and benefits of investing in a fund that holds bitcoin futures contracts.
In its tweet, the office included a link to a June bulletin, where it wrote that “investors should understand that Bitcoin, including gaining exposure through the Bitcoin futures market, is a highly speculative investment.”
Though the tweet didn’t specify exchange-traded funds, some crypto enthusiasts are interpreting it as a hint that the SEC would approve a bitcoin-backed futures ETF, which will invest in bitcoin-based futures contracts instead of the crypto itself.
Some analysts anticipate the regulator will approve at least one bitcoin futures ETF as early as next week, after SEC Chairman Gary Gensler recently reiterated his support for such funds. The SEC hasn’t yet approved any bitcoin-backed ETFs or those underpinned by bitcoin derivatives.
Speculation was stoked Thursday night after Bloomberg News reported the SEC is unlikely to block a bitcoin futures ETF, barring a last-minute reversal, which would clear the way for one to begin trading as soon as next week.
The SEC would either approve, reject or delay the proposals filed by ProShares TQQQ, +5.52%, Valkyrie Investments, Invesco and VanEck HYGB, +0.05% in the next two weeks.
Bitcoin BTCUSD, +2.81% is recently trading at $57,482, up 1% over the past 24 hours.
See: Crypto is ‘not a fad’ says Morgan Stanley CEO Gorman, ‘It’s not going away’
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