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The issue of US SEC approving futures bitcoin ETF rather while avoiding Spot bitcoin ETF arouse every time a future product gets a permit
The United States Security and Exchange Commission has approved yet another bitcoin futures ETF filing under a similar regulation on which spot bitcoin ETF has relied. Although besides being reliable for spot bitcoin exchange-traded funds, none of it made it to get approval from the SEC. The recent Bitcoin Futures Fund (XBTO) from Valkyrie Investments was approved, which was filed under the Securities Act of 1933 or generally called the ‘33 Act.
Chief Investment Officer at Valkyrie Investments, Steven McClurg, said that the company is eager to bring the product to the market. However, there was no immediate comment regarding the launch date of the future ETF of the investment firm.
ProShares became the first one that the SEC first allowed with such a product in the market, the ETFs that can invest in Bitcoin futures contracts that were launched last October. Valkyrie and VanEck followed ProShares with similar funds where all three firms filed their products under the ‘40 Act or the Investment Company Act of 1940.
Last month, the bitcoin futures ETF from fund group Teucrium was approved by the regulators under the ‘33 Act. CEO of Grayscale Investments, Michael Sonnenschein, said at the time, while citing the statements weakening the arguments of SEC to deny the spot bitcoin ETFs. While saying about it, he said that the agency had cited the difference between the ‘33 Act and ‘40 Act as a reason for denial earlier. At present, Grayscale is expecting to convert its GBTC or Bitcoin Trust to an ETF and the decision from the SEC regarding the decision of this proposal is pending till July.
Among one of the handfuls of ETF issuers, Valkyrie aims to bring a product to the market that invests in bitcoin directly. Though such an investment product exists in countries like Canada, Latin America, and European regions, regulators in the United States have continuously denied all the attempts so far in order to launch an ETF like this.
CIO McClurg said that for a spot bitcoin ETF, the firm believed that the news has put them close to an approval that would go eventually but would be hesitating to put a sort of timeline on a decision like this and are keen to work continuously instead, with the regulator to help the satisfy further warranter the concerns and work collaboratively towards progress in this space evolving with rapid pace. However, there is uncertainty regarding the spot bitcoin ETF approval from the regulator, while numerous people believe that one will not launch until early 2023.
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.
