SEC Officially Approves Application for Bitcoin Futures ETF Introduced by NYSE Arca and Teucrium

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SEC Officially Approves Application for Bitcoin Futures ETF Introduced by NYSE Arca and Teucrium By Angel Di Matteo @shadowargel

Yes OK NYSE Ark and Teucrium join the group of companies that operate a ETFs of futures of Bitcoin, there is still the doubt about when will be the moment in which the SEQ approve one properly based on the digital currency.

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The US Securities and Exchange Commission (SEC) formally accepted the request made by NYSE Ark and Teucrium for the issuance of an exchange-traded fund (ETFs) based on futures Bitcoin.

SEQ approves ETFs of futures of Bitcoin presented by NYSE Arca and Teucrium

The announcement was made by the SEC in a statement published today through its website, in which it indicated that Teucrium now appears within the group of companies issuing a ETFs associated with futures Bitcoin, this since the regulator approved the first of its kind in October last year following a change in its perspective on the matter.

As such, Teucrium and NYSE Ark filed the application with the SEQ last year, this in accordance with the provisions of the Law of Securities of 1934. This as such represents a change in the perspective towards this type of product, since those previously approved to other entities are covered by the Investment Company Law of 1940, which suggests a regulatory perspective somewhat different from that of the recently accepted case.

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Important precedent to consider for a Bitcoin ETFs

Although it is clear that the SEQ has opened up the perspective a bit with respect to the ETFs based on digital currency futures, many critics assure that this is not what was originally expected, precisely because the regulator is still very tight-lipped about the possibility of launching an exchange-traded fund fully associated with Bitcoin, whose price would be directly linked to the price of the digital currency in the main exchanges and crypto markets.

Regarding the latter case, the SEQ has rejected proposals for VanEck, WisdomTree, Fidelity, and recently that of ARK Invest. Given all these requests, the regulator indicated that none addressed the problems associated with price volatility or the possibility that the associated market could be subject to manipulation.

However, the analyst Bloomberg, James Seyffart, indicated at the time that this could be a good mechanism for a Bitcoin ETFs in the US will eventually see the light, since sheltering under the Securities Act of 1933 establishes rules that could be beneficial for cases such as those of greyscale, which would be trying to convert your Grayscale Bitcoin Fund (GBTC) in a fund listed on the local stock exchange.

While the bidding for a ETFs based on Bitcoin, NYSE Ark and Teucrium they join ProShares, Valkyrie Already VanEck such as entities fully authorized to operate a futures-linked exchange-traded fund BTC.


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Source: CoinDesk, SEQ

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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