Will the SEC approve a bitcoin spot ETF?

The SEC has yet to approve a Bitcoin spot ETF that invests in the cryptocurrency directly for listing on a major U.S. exchange. Nevertheless, the SEC made history in 2021 when it approved the first Bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), to trade on the New York Stock Exchange.

Should you invest in bitcoin futures ETFs?

Instead of investing in Bitcoin directly, the BITO fund and other Bitcoin futures ETFs invest in a diversified basket of Bitcoin futures contracts. Erik Anderson, senior digital assets research analyst at Global X ETFs, says crypto futures ETFs have a few advantages.

Will bitcoin futures-based products protect investors?

The first product will track bitcoin futures, rather than the price of bitcoin directly, however. SEC Chair Gary Gensler indicated he believes futures-based products might provide stronger investor protections due to the laws under which they operate.