BlockFi’s keen to launch Bitcoin ETF

If a recent Securities and Exchange Commission (SEC) filing is anything to go by, the bitcoin (BTC) lending platform of BlockFi has expressed that it wants to offer bitcoin futures exchange-traded funds in the United States. The company is the most recent addition in the race that cryptocurrency pundits believe could be seeing the fruits of their labor this month.  

BlockFi’s ETF  

Reports suggest that the ETF analysts of the said BTC lending firm are “very bullish on approval” of a bitcoin futures ETF this month. Further, it is believed that BlockFi’s ETF could be the fifth to seek an SEC approval, though the go signal won’t come before VanEck, Galaxy, Valkyrie, and ProShares as these also filed for approval.  

ProShares might get approved first  

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The ETF analyst at Bloomberg – Eric Balchunas tweeted their analysis of the most recent bitcoin futures ETF filings alongside their odds of getting approved by the SEC. Per the tweet, ProShares is the most likely to get approved first. This provided that the SEC will be following its typical path, though it was pointed out that allowing several ETFs to start trading at once would avoid giving a first-mover advantage. Balchunas believes that October 18, 2021, could be the date ProShare’s filing gets greenlit.  

Further, it was also noted that ProShares was the first to file for approval and has already rolled out a mutual fund within the U.S. with the same strategy on schedule, 77 days after their filing.  

Valkyrie Bitcoin Strategy ETF, on the other hand, has been deemed to be a dark horse on this race, albeit the fact that they filed after ProShares and other ETFs.  


BlockFi’s ETF to invest in these  

Going back to BlockFi Bitcoin Strategy ETF, it is seeking registration under the Investment Company Act of 1940. It was learned that the fund would be investing in cash-settled futures contracts that are traded on the Chicago Mercantile Exchange (CME). In their October 8 filing, BlockFi also stated that they’d also invest in cash or cash equivalent investments and on short-duration fixed income securities.  

There’s also a part in BlockFi’s SEC filing stating that the fund is seeking to invest in bitcoin futures so that the total value of the bitcoin to which the fund has economic exposure is equal to approximately 100 percent of the net assets of the fund. Nonetheless, the bitcoin future exposure is said to be indirect via investments within a wholly-owned subsidiary that is organized and subject to Cayman Islands laws. 

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Andrew Smith
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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