April 17, 2024

SEC Approves Valkyrie’s BTC Futures ETF

Earlier this month, the SEC authorized Teucrium’s BTC futures exchange-traded fund (ETF), making it the first financial asset to be licensed under the ’33 Act since its inception.

SEC Approves ETF For Valkyrie

The regulatory agency of the U.S. has approved Valkyrie’s petition to establish a futures ETF in the country. Although the SEC has already authorized futures ETFs, there is no indication that the commission has given the green light to spot ETFs.

The regulatory commission’s publication submitted on Thursday stated the application was submitted under the Securities Exchange Act of 1934 with the aid of a 19b-4 form. The 1934 Act is the same legislation on which those applying for a BTC ETF have relied in the past, although it has not been successful. Earlier this month, the SEC authorized Teucrium’s BTC futures ETF, making it the first financial asset to be authorized under the ’33 Act since its inception.

The Valkyrie XBTO BTC Futures Fund, which was established in August last year, monitors the performance of BTC futures contracts. On its part, the regulator has approved Bitcoin futures exchange-traded funds from VanEck and ProShares, but it has so far rejected all requests to form a spot BTC exchange-traded fund. Bitcoin ETFs are available in a number of locations, including Latin America, Canada, and Europe.

Several Companies Submit Proposals For ETFs

Many businesses have pulled their proposals for exchange-traded funds during the last year, including Bitwise, which has diverted emphasis to a spot fund. The assets have done well so far, but many people are looking for even better results, especially with the launch of a spot ETF in the near future. According to a new Nasdaq survey, the introduction of a spot BTC ETF may increase the number of financial advisors who use digital currencies.

As stated by Bloomberg analysts, James Seyffart and Eric Balchunas in March, the surveillance agency might approve a spot BTC ETF in the middle of 2023. This approval will depend on a potential adjustment to the SEC’s guidelines to update the meaning of the term “exchange.” 

As per the results of a poll conducted by Nasdaq, just 38% of financial advisors believed it was likely that the commission would ultimately authorize a spot crypto ETF. However, 31% percent believed it will not happen.

Exchange-Traded Fund

An ETF is a kind of pooled financial asset like bonds or stocks. Usually, ETFs will follow a specific commodity, index, or sector and may be acquired or traded on a stock market like a regular stock.

Leave a Reply

Your email address will not be published. Required fields are marked *