The US Securities and Exchange Commission is yet to entertain an application for a Bitcoin exchange-traded fund (ETF), but that isn’t stopping firms from pushing in more envelopes. Maryland-based investment manager AdvisorShares is the latest addition to this group with its recent filing for a Bitcoin futures ETF.
<h2>Fund Manager AdvisorShares Files for Bitcoin Futures ETF</h2>
Reports suggest that AdvisorShares is planning to offer a Bitcoin futures ETF to its institutional clients and has applied with the SEC for the same. 

According to the <a href="https://www.sec.gov/Archives/edgar/data/1408970/000182912621008454/advisorsharestrust_485apos.htm">document</a> submitted by AdvisorShares, the fund will invest “all or substantially all of its assets” in Bitcoin futures and collateral. It will also invest to a lesser extent in exchange-traded products (ETPs) that provide exposure to the pioneer cryptocurrency. However, the proposed fund will never directly hold Bitcoin. 

AdvisorShares will be assisted by Morgan Creek Capital, which will use internal and external research to implement the fund’s principal investment strategies. 

Unlike <a href="https://www.cryptoknowmics.com/news/sec-chair-gary-genslers-comments-concern-bitcoin-etf-prospects/">Bitcoin ETFs</a> that track the value of king crypto and trade on traditional stock markets, futures-based Bitcoin ETFs track futures contracts, which are basically agreements to buy or sell a commodity at predetermined prices. Usually, firms prefer to apply for a Bitcoin ETF at first, failing which they settle for a future-based ETF.

Earlier this month, SEC chair Gary Gensler <a href="https://www.cryptoknowmics.com/news/sec-chair-gary-genslers-comments-concern-bitcoin-etf-prospects/">suggested</a> that he would be open to considering Bitcoin futures ETFs under strict rules. It seems AdvisorShares might be heeding Gensler’s words while planning its crypto-focused offering.
<h2>ETF Approval Likely in 2022: Todd Rosenbluth</h2>
Although the pile of ETF applications at the SEC is only getting taller with time, the regulator seems in no hurry to process them. That is because there are multiple steps to approval and each product will be thoroughly scrutinized before it’s passed on to the market.

In a recent interview, Todd Rosenbluth, the head of ETF and mutual fund research at CFRA told CNBC that he expects ETF approval to occur in 2022.

“I expect a futures-based [bitcoin] ETF approval is more likely to occur in 2022 than in 2021. There are multiple steps in the potential approval process, and each product is often at different stages of that approval process,” he said.

AdvisorShares Becomes Latest Firm to Apply for Bitcoin Futures ETF

Maryland-based investment manager AdvisorShares has become the latest firm to file for a Bitcoin futures ETF with the SEC.

Divya is a postgraduate from Jawaharlal Nehru University specializing in International Relations and a professional writer with more than 5 years of experience writing for the web. She is an avid reader interested in the global financial system and the effects of decentralization. At Cryptoknowmics, she hopes to deliver clear and understandable content to inform readers about the latest events in the crypto sector.

AdvisorShares Becomes Latest Firm to Apply for Bitcoin Futures ETF

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