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- The Fund shares would trade in the NYSE Arca stock exchange under the ticker symbol ‘BCFU.’
- Teucrium may think that they are advantageous because Bitcoin does not physically back its ETFs
- U.S. Treasury Secretary Janet Yellen has previously mentioned that the protection of investors has always been a priority for them
According to CoinDesk, ETF provider Teucrium has recently applied to the U.S. Securities and Exchange Commission (SEC) to launch an Exchange Traded Fund (ETF).
If Approved the Fund Shares Would Trade Under Symbol ‘BCFU’
As per the SEC application, Teucrium Bitcoin Futures Fund aims to provide customers a cost-effective solution to gain price exposure to the Bitcoin market. The Fund shares would trade in the NYSE Arca stock exchange under the ticker symbol ‘BCFU.’ These shares can be purchased and sold by the investors through their broker-dealers. If the SEC approves, Teucrium will track Bitcoin futures contracts. However, Teucrium Bitcoin Futures Fund (BCFU) is different from most Bitcoin Future Funds filed. This is because most of them are physically backed by Bitcoin.
Why Regulators are Having a Hard Time Approving ETFs
While the SEC is yet to approve the application, Teucrium may think they are at an advantage because their ETFs are not backed by Bitcoin, unlike most proposed ETFs. Many applicants are hoping that the new SEC Chair Gary Gensler will green signal the ETFs. Unfortunately, SEC staff called bitcoin ‘highly speculative,’ which hinted towards the uncertainty in the approval of ETFs. It means the regulator SEC is not yet ready to support the cause of ETFs.
Bitcoin ETFs have been unsuccessful in the United States owing to their volatility in the market. U.S. Treasury Secretary Janet Yellen has previously mentioned that the protection of investors has always been a priority for them. An ETF, on the other hand, would expose assets to a considerable number of consumers. This, in turn, may increase the volatility and result in heavy losses, which the regulator doesn’t want.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
