The US Securities and Exchange Commission has approved the launch of a Bitcoin (BTC) futures exchange-traded fund by NYSE Arca and Teucrium. In a posting on its website on Wednesday, the SEC announced Teucrium’s approval, joining a long list of other BTC futures ETF issuers.
Teucrium and NYSE Arca filed the application under the Securities Exchange Act of 1934, submitting a 19b-4 form to the Securities and Exchange Commission. Other companies had already filed Bitcoin futures ETFs under the Investment Company Act of 1940, which has a slightly different regulatory path to approval.
According to Bloomberg analyst James Seyffart, clearance under the Securities Act of 1933, which Teucrium’s registration falls under, may potentially open the door for a spot Bitcoin ETF. Like situations must be treated similarly, according to proponents of crypto ETFs, citing an argument made by crypto startup Grayscale, which sought to convert its Grayscale Bitcoin Fund (GBTC) to an Exchange Traded Fund. Grayscale is a Digital Currency Group subsidiary.
To date, the SEC has rejected all spot Bitcoin ETF applications, citing market manipulation concerns and the lack of a surveillance-sharing agreement between an ETF issuer and a significant market that trades the underlying commodity. That hasn’t stopped a number of companies from attempting to launch a Bitcoin ETF.
Spot Bitcoin ETFs come in early?
Given a projected US Securities and Exchange Commission (SEC) rule change that redefines exchanges, it was originally expected that Spot Bitcoin (BTC) exchange-traded funds might start to receive some approvals by mid-2023.
Bloomberg Intelligence analysts James Seyffart and Eric Balchunas had said that,
“Expanding the definition of exchange could eliminate the agency’s primary objection to the products by bringing cryptocurrency platforms under the SEC’s regulatory framework. Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval.”
So far, ProShares, Valkyrie, and VanEck have been granted permission to launch and trade BTC futures ETFs in the United States. Valkyrie has also applied to develop a Bitcoin futures ETF under the 33 Act, and its application is outstanding.