The Securities and Exchange Commission of the United States (SEC) has approved the launch of a bitcoin futures exchange-traded fund (EFT) by NYSE Arca and Teucrium. The U.S. securities regulator’s decision might have implications for proposed spot bitcoin funds.
The SEC confirmed the approval in a post on its website on Wednesday, adding Teucrium to a growing list of bitcoin futures ETF issuers.
Teucrium and NYSE Arca submitted the 19b-4 form under the Securities Exchange Act of 1934. Other previously-authorized businesses filed under the Investment Company Act of 1940, which has a somewhat different regulatory procedure for approval.
The ESC’s approval of Teucrium’s application under the Securities Act of 1933 will pave the way for a bitcoin ETF, remarked Bloomberg analyst James Seyffart.
This approval strengthens the case for a spot bitcoin ETF IMO. If SEC denies @Grayscale’ $GBTC conversion in early July I think this approval also strengthens Grayscale’s APA lawsuit against the SEC… time will tell! https://t.co/dYO1i4nmBe
— James Seyffart (@JSeyff) April 6, 2022
Proponents of crypto ETFs have claimed that similar circumstances must be handled in the same manner, citing Grayscale, which recently filed to convert its Grayscale Bitcoin Fund (GBTC) to an ETF.
The regulator has denied all applications for spot bitcoin ETFs, citing concerns about market manipulation and a lack of a surveillance-sharing agreement between the ETF issuer and a significant market that trades the underlying commodity. This has not deterred numerous businesses from attempting to launch a bitcoin ETF.
To date, ProShares, Valkyrie, and VanEck are among the companies permitted to list and trade bitcoin futures ETF in the U.S.