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Ethereum: SEC Nod Imminent for Ether Futures ETFs

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Anticipation is mounting as Ethereum Futures ETFs prepare to secure approval from U.S. securities regulators. These innovative financial contracts enable traders to speculate on the upcoming value of an exchange-traded fund [ETF] without possessing the underlying asset, in this case- ether.

In an exclusive report by Bloomberg, a series of firms are in contention for regulatory endorsement and subsequent issuance of Ethereum futures ETFs. Notable contenders include Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale. These entities have formally submitted applications for ETFs that would center on derivatives contracts linked to ether, rather than the cryptocurrency itself.

To bring this revolution to fruition, the U.S. Securities and Exchange Commission must provide the green light—an event that Bloomberg analysts predict is on the horizon. This optimistic outlook has triggered a surge in applications from preeminent asset management firms, with the most recent entry being the Valkyrie Ethereum Strategy ETF, filed by U.S.-based AUM on August 16.

In a recent move, Volatility Shares has also thrown its hat into the Ethereum ETF arena. Pioneering a unique strategy, their proposed Ether Strategy ETF [Ticker: ETHU] is poised to invest in cash-settled Ethereum futures contracts, thereby bypassing direct involvement in the cryptocurrency itself.

Eric Balchunas, a distinguished senior ETF analyst at Bloomberg, notes that six reputable entities have officially joined the race to launch Ethereum futures exchange-traded funds. This substantial development underscores a burgeoning fascination with broadening investment horizons within the cryptocurrency domain.

Ethereum Is Up By 10%

The firms contending for regulatory approval and the subsequent rollout of Ethereum futures ETFs encompass Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale. These enterprises have meticulously submitted formal applications for their distinct ETF propositions, aiming to acquaint investors with Ethereum futures contracts.

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Image Credit- WhaleWire

The price of Ether, surging nearly 10% from $1,551 to $1,708, responded enthusiastically to news of the United States Securities and Exchange Commission’s impending endorsement of the inaugural exchange-traded funds based on Ether Futures.

While the SEC maintains its resistance toward spot ETFs, it has demonstrated an openness to considering ether futures ETFs. Notably, U.S.-based ETFs that possess crypto derivatives—specifically, bitcoin futures ETFs—already exist. The industry keenly awaits a verdict on the potential approval of ETFs linked to Bitcoin itself, rather than derivatives, a prospect sought after by financial giants such as BlackRock.

Crafting Your Crypto Destiny: The Ultimate US Bitcoin ETF Experience

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The endorsement of spot Bitcoin exchange-traded funds (ETFs) within the United States is anticipated to propel the nation’s portion of crypto ETF trading volumes to an even greater extent, as indicated by an analysis from a Bloomberg expert. Should spot Bitcoin ETFs obtain approval, the United States might encompass a staggering 99.5% of the global trading volume pertaining to ETFs linked to cryptocurrencies. Presently, statistics disclosed by Eric Balchunas, a senior ETF analyst at Bloomberg, on August 10 via Twitter, indicate that North America is responsible for a substantial 97.7% of the overall crypto ETF trading volume.

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Crafting Your Crypto Destiny: The Ultimate US Bitcoin ETF Experience 3

Speculation is rife that if and when spot ETFs are introduced in the United States, this percentage could potentially ascend to around 99.5%. The Securities and Exchange Commission currently holds a queue of applications for spot Bitcoin ETFs awaiting endorsement. An imminent verdict on the collaborative ARKB fund from Ark Invest and 21Shares, slated for August 13, has garnered attention, although a delay is widely anticipated. Cathie Wood, the CEO of Ark, ventured during a Bloomberg interview on August 7 that the regulator might be poised to approve multiple funds concurrently.

Furthermore, on August 10, Bitwise made amendments to its BITC fund’s prospectus, repositioning it from a Bitcoin futures ETF to the “Bitwise Bitcoin and Ether Equal Weight Strategy ETF.” This maneuver parallels a similar action undertaken by Valkyrie on August 5, wherein their BTC Futures ETF (BTF) was modified to encompass Ethereum Futures.

Eric Balchunas succinctly remarked on August 11, “Cannonball Run in effect,” alluding to the swift developments and shifts taking place within this sector.

Crypto ETFs Harmonize Unrivaled Performance

In the meantime, Balchunas also pointed out that the leading 15 exchange-traded funds with the most impressive performance all encompass exposure to cryptocurrency and blockchain sectors. The Valkyrie Bitcoin Miners ETF emerged as the front-runner in terms of performance, having generated a remarkable 227% return since the commencement of 2023. WGMI is a dynamically managed fund accessible through Nasdaq, and it directs investments towards publicly traded companies operating within the Bitcoin mining domain, including Marathon Digital, Riot, and Cipher Mining.

A substantial number of the foremost mining enterprises listed at the top have witnessed their stock values surpass that of Bitcoin throughout this year, potentially elucidating the exceptional achievements observed in products like WGMI. Following suit, the VanEck digital transformation ETF secured the second position in this hierarchy, boasting a 182% return thus far in the current year. Similarly, the DAPP fund also traces the progress of several cryptocurrency mining and technology firms. Notable entities within its portfolio encompass Coinbase, MicroStrategy, Galaxy Digital, Canaan, and Hive.

Additional prominent cryptocurrency-linked exchange-traded products (ETPs) that garnered attention consisted of the Global X Blockchain ETF (BKCH), posting a year-to-date surge of 168%; the Bitwise Crypto Industry Innovators ETF (BITQ), which also achieved a 168% return; and Invesco’s Alerian Galaxy Crypto Economy ETF (SATO), marking a robust 162% increase in performance throughout the course of 2023.

Bitcoin ETF Approval: Potential For Multiple Simultaneous Green Lights

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In a recent interview with Bloomberg, Cathie Wood, CEO and CIO of ARK Investment Management, revealed that she believes the US Securities and Exchange Commission (SEC) might approve multiple spot Bitcoin exchange-traded funds (ETFs) simultaneously. This statement marks a shift from her previous assertion that her firm would likely be the first to receive approval for such a product.

Wood expressed her views on the SEC’s potential actions regarding Bitcoin ETFs, suggesting that the regulatory body could green-light several applications simultaneously. This change in perspective could level the playing field for these products, which have the potential to generate a demand exceeding $50 billion. The spot Bitcoin ETFs are novel financial instruments not yet operational in the US, and their approval has been a subject of debate due to regulatory concerns.

Seve­ral prominent investment firms, including BlackRock Inc., Fide­lity, WisdomTree, VanEck, and Invesco, have­ submitted applications to launch similar spot Bitcoin ETFs. Wood suggests that the marke­ting strategies impleme­nted by each issuer may de­termine the succe­ss of these ETFs.

RephraseBloomberg ETF analyst Jame­s Seyffart agreed with Wood, stating that re­gulators would likely find it easier to approve­ multiple spot Bitcoin funds together. One­ influencing factor is the ongoing lawsuit betwe­en Grayscale Investme­nts LLC and the SEC. Grayscale had sued afte­r the SEC rejecte­d its plan to convert the $18 billion Grayscale Bitcoin Trust into an ETF.

Bitcoin ETFs Await Regulatory Decision

The SEC’s decision regarding Bitcoin ETFs is reaching a critical juncture, with an impending deadline for ARK’s application set for August 13. The SEC is obligated to either approve, disapprove, or initiate proceedings to determine the fate of the proposed rule change. While the SEC can extend the deadline to a maximum of 240 days, experts speculate that a decision could be reached as early as August.

The prospect of multiple spot Bitcoin ETF approvals has ignited discussions within the financial industry as stakeholders eagerly await the SEC’s verdict on these innovative investment products. However, the outcome could potentially pave the way for increased mainstream adoption of cryptocurrencies and further shape the regulatory landscape for digital assets.

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Ethereum Futures ETF Race Heats Up: Six Companies Vie For Approval

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In the latest developments within the crypto investment landscape, it has been reported by Eric Balchunas, a prominent senior ETF analyst at Bloomberg, that six noteworthy companies have officially entered the race to launch Ethereum futures exchange-traded funds (ETFs). This significant move signals a growing interest in expanding investment opportunities within the realm of cryptocurrencies.

The companies vying for regulatory approval and subsequent issuance of Ethereum futures ETFs include Volatility Shares, Bitwise, Roundhill, VanEck, Proshares, and Grayscale. These firms have submitted formal applications for their respective ETF offerings, seeking to expose investors to Ethereum futures contracts.

Strategies For Tracking Ethereum Futures Contracts

The submitted ETF proposals exhibit varying strategies and approaches for tracking Ethereum futures contracts. Below is a summary of the companies, their respective ETF tickers, strategies, and the status of their applications:

  1. Volatility Shares – Ether Strategy ETF (ETHU)
    1. Derivatives-Based Replication Strategy
    2. Filing Date: 7/28/2023
    3. SEC Approval Status: Awaiting Approval, Target Date: 10/11/2023
  2. Bitwise – Bitwise Ethereum Strategy ETF
    1. Futures/Derivatives-Based 1940 Act
    2. Filing Date: 8/1/2023
    3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023
  3. Roundhill – Roundhill Ether Strategy ETF
    1. Futures/Derivatives-Based 1940 Act
    2. Filing Date: 8/1/2023
    3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023
  4. VanEck – Proshares Ethereum Strategy ETF
    1. Futures/Derivatives-Based 1940 Act
    2. Filing Date: 8/1/2023
    3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023
  5. Proshares – Grayscale Ether Strategy ETF
    1. Futures/Derivatives-Based 1940 Act
    2. Filing Date: 8/1/2023
    3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023
  6. Grayscale – Grayscale Ether Strategy ETF
    1. Futures/Derivatives-Based 1940 Act
    2. Filing Date: 8/1/2023
    3. SEC Approval Status: Awaiting Approval, Target Date: 10/16/2023

These applications signify the ongoing efforts by various financial institutions to introduce more accessible avenues for traditional investors to participate in the evolving cryptocurrency market. 

The anticipation now rests upon the Securities and Exchange Commission (SEC) to evaluate and approve these proposals, potentially paving the way for a new wave of Ethereum futures ETFs and broader cryptocurrency investment options for interested investors.

Meanwhile, Balchunas also introduced the world’s first billion-dollar single stock ETF, $TSLL, noting its remarkable popularity despite offering just 1.5 times exposure. Balchunas revealed that a significant portion of the asset under management (AUM) comes from appreciation, with less than half stemming from flows. 

Notably, this ETF earned a spot on the July Outliers list due to its impressive $200 million influx through Sebastien Cabral, an equity research associate for Bloomberg and Bloomberg Intelligence. This revelation underscores the evolving dynamics of ETF investing, with $TSLL emerging as a noteworthy example of substantial growth driven by both investor interest and asset appreciation.

Related Reading | Microstrategy Suffers After Bitcoin Price Dips, Holders of Pomerdoge Are Increasing Their Holdings As Price Surge Expected

Bitcoin Investment Trust Grayscale Appeals for Coordinated Approval of ETF Applications

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Grayscale, a crypto fund manager, previously faced rejection from the Securities and Exchange Commission (SEC) for its ETF proposal, along with several other spot Bitcoin ETF applications. Now, Grayscale is urging the SEC to approve all the proposed spot Bitcoin ETFs simultaneously to ensure that no single ETF gains an advantage over the others.

In a post on July 27, Grayscale’s Chief Legal Officer, Craig Salm, stated that their legal team submitted a letter discussing eight spot Bitcoin ETF filings, including Grayscale’s own application. The letter argued against the SEC favoring certain ETFs over others, emphasizing the need for a fair and well-organized decision-making process.

According to the letter, they suggested that the SEC could use its previous approvals of Bitcoin futures ETFs as a basis for approving spot ETFs, as these two types of funds are closely related.

Additionally, this assset manager raised concerns about the recent surveillance sharing agreements (SSAs) between Coinbase and the spot ETF providers. They claimed that these agreements, which involve sharing trading data for regulatory purposes, are not a novel concept and may not meet the SEC’s standards.

Grayscale Appeals SEC’s Decision on Bitcoin ETFs

Recently, several major players in the financial industry, including Invesco, BlackRock, Valkyrie, VanEck, Wisdom, Fidelity, and ARK Invest, updated their ETF filings to include Surveillance Sharing Agreements (SSAs) with Coinbase. These agreements would involve Coinbase sharing information about its trading activities and other relevant data with the Securities and Exchange Commission (SEC). The purpose behind these SSAs is to enable the SEC to monitor the crypto markets closely for any signs of potential market manipulation or irregular trading behavior.

The SEC had raised concerns about the lack of SSAs in the ETF filings, expressing the belief that such agreements were necessary due to the perceived possibility of market manipulation in the cryptocurrency markets. As a result, in late June, the SEC postponed its decision on these ETFs.

However, Grayscale, a prominent crypto fund manager, contested the necessity of the SSAs under the SEC’s standards. They argued that these agreements would not meet the SEC’s requirements because Coinbase is not registered with the SEC as a securities exchange or broker-dealer, nor with the Commodity Futures Trading Commission as a futures exchange. Grayscale implied that the inclusion of SSAs may not be essential or sufficient to address the SEC’s concerns about market manipulation.

Grayscale contended that approving the ETFs would represent a positive change in the SEC’s standard application. However, they emphasized that it would also lead to a sudden and significant shift, granting an unfair and discriminatory advantage to these particular proposals over others.

According to Grayscale’s Chief Legal Officer, Craig Salm, the Grayscale Bitcoin Trust (GBTC), which is designed to track Bitcoin’s price, has attracted nearly 1 million investors. He asserted that converting GBTC into an ETF would generate substantial value for these investors. Consequently, he argued that there is no valid reason for the SEC to prevent GBTC investors from accessing a spot Bitcoin ETF.

The SEC had previously denied Grayscale’s application to convert GBTC into a spot Bitcoin ETF in June of the previous year.

In response to the SEC’s decision, Grayscale took legal action against the regulator, alleging that the SEC’s actions were arbitrary and lacked consistent treatment of similar investment vehicles.

Cboe’s Amendments For Bitcoin ETFs Sparks A Rally In Coinbase Shares

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Bitcoin and Coinbase [COIN] shares got a new lease on life after trading behemoth Cboe filed amendments for five proposed spot BTC ETFs to enter into surveillance-sharing arrangements with the exchange. According to the July 11 filings made with the SEC, the agreement was finalized for each of these applications on June 21.

The amendments submitted for Cboe’s five ETF applications are Wise Origin, WisdomTree, VanEck, Invesco Galaxy, and ARK 21Shares. Data from TradingView showed that COIN increased by over 11%, and shares were still up 10% to $90 at 1:11 p.m. in New York. Coinbase’s stock is also up around 133% over the past six months, while year-to-year growth is roughly 50%.

On the other hand, Bitcoin is currently trading at $30,641, showing a marginal profit of less than 0.5% on the daily time frame. BTC is anticipated to rise as a result of a slowing in the Consumer Price Index [CPI] on July 12. Despite failing to surpass the $31,000 threshold, a 3% inflation rate might give the asset a push in the upward direction.

While this is happening, the dominant crypto has recently made waves, garnering a lot of attention and luring many users. Glassnode, a well-known data source, discovered a noticeable increase in new addresses on the Bitcoin network. This increase was particularly noteworthy because it had not been seen since April.

Bitcoin Sees A Rise In New Addresses

So far, roughly 551k new addresses have been registered, a remarkable increase from the 340k recorded on July 2. This surge in new addresses indicates robust growth within the network and opens up the possibility of further price spikes for BTC.

The unexpected inflow of new addresses has an impact on both the demand for and price of Bitcoin; it is more than simply a simple numerical rise. The demand for BTC may increase considerably as more users join the network, thus affecting its overall value.

Additionally, Bitcoin continued to pique investors’ interest, with massive inflows totaling $133 million over the past week, according to the latest edition of the CoinShares Digital Asset Fund Flows Weekly Report.

Bitcoin’s Future In Peril: Fidelity’s Global Macro Director Issues Stark Warning

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Fidelity’s Director of Global Macro, Jurrien Timmer, took to Twitter to deliver a poignant cautionary message regarding the future of the world’s most popular cryptocurrency, Bitcoin. Timmer’s recent tweet stated that the financial industry as he expressed concern over Bitcoin’s response to the increasing real rates while hinting at the potential arrival of a spot ETF.

With a touch of skepticism, Timmer acknowledged Bitcoin’s ambitious quest to become a digital store of value yet questioned its current stance amidst the mounting real rates. The chart he presented unveils a fascinating narrative: Bitcoin appears to be racing ahead of its own adoption curve, seemingly ignoring the macroeconomic conditions dictated by the real-rate environment.

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While the crypto world has witnessed remarkable growth and adoption, Timmer’s analysis suggests that caution should be exercised. It seems BTC may be getting ahead of itself, potentially veering into dangerous territory. 

The implications of Timmer’s statement are profound. Could this be a mere hiccup in BTC’s journey toward mainstream acceptance, or does it foreshadow a significant correction soon? Market participants are left grappling with these questions as they contemplate the implications of Timmer’s observation.

However, Bitcoin finds itself at a critical juncture. The tides of macroeconomic conditions can be unforgiving, and if Bitcoin fails to align with the prevailing real-rate environment, it risks a potential setback in its growth trajectory.

Cboe Amends Bitcoin ETF Applications with Coinbase Surveillance Agreement

Meanwhile, the exchange operator Cboe Global Markets has made noteworthy amendments to five spot Bitcoin Exchange-Traded Fund (ETF) applications. The revisions include the addition of a surveillance-sharing agreement (SSA) with Coinbase.

Spot Bitcoin ETF applications have been grabbing attention in the industry lately. Notably, Fidelity, Invesco, Wisdom Tree, and Valkyrie have followed in the footsteps of BlackRock, a $10 trillion asset management firm, by filing their own ETFs for SEC approval.

On July 11, Cboe officially amended the filings with the US SEC for the ETFs from Invesco, VanEck, WisdomTree, Fidelity, and the joint fund by ARK Invest and 21Shares. Cboe confirmed that it had reached an agreement with Coinbase and finalized the terms of the SSA on June 21.

Nevertheless, as cryptocurrency enthusiasts eagerly await the advent of a spot ETF, Timmer’s words cast a shadow of doubt over the future trajectory of Bitcoin. The outcome will shape the cryptocurrency market and impact the broader financial landscape.

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El Salvador Unveils “Volcano Energy” for Bitcoin Mining: To Build Power Generation Park

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El Salvador has made a groundbreaking announcement, revealing its ambitious plans to establish a renewable power generation park in the Metapán region. The initiative, known as “Volcano Energy,” aims to position the country as a major player in the global Bitcoin mining industry while promoting energy competitiveness, diversification, and geographic expansion for the Bitcoin network. 

$1 Billion Investment From Bitcoin Industry Leaders

This strategic move aligns with El Salvador’s commitment to sustainable development and its burgeoning interest in the cryptocurrency market.

The renewable power generation park will combine solar and wind projects, harnessing the country’s abundant natural resources. With a capacity of 169MW of photovoltaic solar energy and 72MW of wind energy, the park is expected to generate a total of 241MW. 

This significant undertaking marks a transformative journey for El Salvador, as it aspires to become home to one of the world’s largest Bitcoin mining farms.

The total commitment for the project amounts to a staggering $1 billion, with an initial investment of $250 million. Key industry leaders within the Bitcoin sector, along with renewable energy technology developers and Bitcoin mining experts, have come together to bootstrap this monumental endeavor. 

The government of El Salvador will play a vital role in the planning and execution of the initiative, securing a preferred participation equivalent to 23% of the revenue. 

The remaining ownership will be divided among investors and reinvested to expand energy production capacity and advance Bitcoin mining operations.

By leveraging the concept of Volcano Energy, El Salvador seeks to establish a prosperous future driven by sustainable energy and Bitcoin. 

Volcanoes hold the potential to serve as the backbone of this transformative journey, fostering economic growth and prosperity for future generations. 

The construction of the renewable power generation park signifies a significant leap forward in achieving these goals while solidifying El Salvador’s position in the global Bitcoin mining industry.

Industry expert Robert Warren, Co-founder of Distributed Hash, shed light on the project via Twitter. Warren explained that integrating wind and solar energy is a strategic move to monetize the base set of geothermal expansion. 

This holistic approach showcases El Salvador’s forward-thinking approach to energy production and its intent to maximize the benefits of various renewable sources.

While the initiative is still in its early stages, there is considerable optimism surrounding its potential success. The chosen location in El Shiste, Metapán, offers exceptional solar and wind energy yields, making it an ideal site for this groundbreaking project. 

As El Salvador embraces hashing at scale, the world eagerly awaits the unfolding of this remarkable deployment and the impact it will have on the country’s sustainable energy future.

Related Reading |  Ethereum Soars: VanEck’s Bold 2030 Forecast Foresees ETH At $11,800 

Bitcoin Might Fall Over 40% In Q1 2023 Amidst Miner’s Bankruptcy

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Bitcoin’s prolonged slump might last until Q1 2023 and fall back in the $10k–$12k area against the backdrop of miner bankruptcy, signalling the low point of the crypto winter, according to Matthew Sigel, head of digital assets analysis at VanEck.

“This bitcoin mining sector is under extreme duress right now. We have an index which tracks the publicly traded companies in this sector; the median market cap is now below $200 million, and every one of these companies is burning cash, trading well below book value,” Sigel explained.

Despite this, VanEck is certain that when inflation falls, bitcoin might bounce back to $30,000 in the second part of 2023. The value of the world’s largest crypto asset is also expected to halve in 2024, an occurrence that generally occurs every four years and has historically increased the price prior to halving.

We acknowledge that bitcoin has been trading like a risk asset. The sensitivity to higher rates has been higher than I expected and one reason for that is that the political response to inflation in the developed markets has been to cap energy prices and widen sanctions; in a sense, micromanage economic activity to facilitate this energy transition.

The foundation of the BTC ecosystem is bitcoin mining, and miners’ profits also shed light on BTC price changes and the state of the whole crypto market.

It is commonly known that the present bear market is difficult for Bitcoin miners which are facing triple whammy of high hash rates and difficulty, high energy prices, and low BTC prices.

Bitcoin Miners’ Tough Days And Ripple Vs Sec Outcome

Leading Bitcoin miner Blockstream just raised money at a 70% discount according to a Dec. 7 Bloomberg report.

Another prominent miner, Compute North, filed for Chapter 11 bankruptcy. Given the industry’s interconnected behavior, the fall of one acts as a domino effect.

That being said VanEck’s other forecast include financial institutions that are anticipated to tokenize more than $10 billion in off-chain assets and that the market cap of a new decentralized stablecoin would surpass $1 billion.

A portion of sovereign debt issues will be tokenized on blockchain in Brazil, according to the investment firm, which also predicts that Ripple will lose the SEC lawsuit and Ethereum will allow withdrawals from the Beacon Chain.

Bitcoin And Ethereum ETFs Filed By Hong Kong’s Three AUMs

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Hong Kong would soon have its first Bitcoin and Ethereum exchange-traded funds as three asset management firms have submitted their ETF applications to the Securities and Futures Commission [SFC], local media Nikkei Asia reported.

The three AUMs in the race are CSOP Asset Management, Samsung Asset Management, and Mirae Asset Global Investments.

Once granted approval, bitcoin and ether futures will go live on the Chicago Mercantile Exchange, according to people familiar with the plans.

The move comes amidst Hong Kong’s grand ambition to position itself as the global crypto hub.

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Bitcoin And Ethereum ETFs Filed By Hong Kong's Three AUMs 6

Despite the FTX contagion that sent a chill across the industry, institutional and retail clients in Hong Kong, mainland China, and Taiwan have shown more interest in investing in cryptocurrency ETFs.

This was stated by Chris Pigott, head of Asia ETF services for Brown Brothers Harriman, citing an annual survey by the company. However, the recent trouble at FTX and cryptocurrency market volatility could impact investors’ views, he said.

Pigott expects the first product to be released before the end of 2022 or early next year, depending on issuer readiness.

The Hong Kong SFC stated that the city’s cryptocurrency industry had made “significant advancement” in the past four years, providing the framework for retail investors, in contrast to mainland China, which has explicitly banned cryptocurrencies.

But on the regulatory front, officials are still cautious. Last month, the Hong Kong Monetary Authority told the city’s Legislative Council that sound regulation was necessary to become a digital asset hub.

The city is amending its anti-money laundering law, strengthening investor protection, and requiring all virtual asset exchanges to be licensed. The bill is anticipated to be passed this year-end.

Bitcoin ETFs Regain After BTC Tapped A 2-Week High

That said, approvals for the ETF applications could take up to three months but would be prioritized early if in the government’s interest. All sources declined to be named, claiming the need to protect their identities.

On Nov 30, Bitcoin strategy-focused exchange-traded funds tracked higher as the underlying digital currency hit a two-week trading high.

Funds such as the ProShares Bitcoin Strategy ETF [NYSEARCA: BITO], Valkyrie Bitcoin Strategy ETF [NASDAQ: BTF], and the VanEck Bitcoin Strategy ETF [BATS: XBTF] all traded in the green early on as Bitcoin gained over 2%.

At the moment, Bitcoin is hovering slightly above the $17k mark after a massive decline in early November.