BlockFi filed to sell a bitcoin futures exchange-traded fund (ETF) on Friday, joining a competition that industry analysts predict could reach a fever pitch in the coming weeks.
According to regulatory documents, the fund, dubbed “BlockFi Bitcoin Strategy ETF,” would invest only in futures contracts sold on the CME. It would be registered as an investment company according to the Investment Company Act of 1940 (often referred to as the’40 Act). These characteristics correspond to a hypothetical bitcoin ETF that SEC Chairman Gary Gensler suggested may eventually get clearance.
BlockFi, on the other hand, has a tiny probability of reaching the finish line first. A slew of identical offers submitted months ago is scheduled to be decided later this month. ETF experts think that at least one of these is likely to be authorized, especially in light of Gensler’s recent remarks. Bloomberg Intelligence’s Eric Balchunas, a senior ETF analyst, expects that one or more applications will be approved this month.
In a message to CoinDesk, a BlockFi representative verified the submission. “If authorized, the actively managed fund would invest mainly in Commodity Futures Trading Commission-registered Bitcoin futures contracts and would have no direct exposure to Bitcoin.” We look forward to providing more information to the market as they become available,” the statement said.
At least one significant competitor has started preparing for Gensler’s approval. VanEck, the ETF company, acquired insurance coverage for its yet-to-be-launched bitcoin futures ETF earlier this week. On Oct. 26, one day after the SEC’s decision deadline, the regulation becomes effective. The policy provides no indication of whether or not VanEck’s permission will be granted.
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