Last week but one, SEC approved the Teucrium Bitcoin futures ETF, which marked the first-ever such instrument to get a nod under the 33 Act.
The United States Securities and Exchange Commission (SEC) has approved Valkyrie’s application for an exchange-traded fund (ETF). This is the second ETF getting a nod, but no sign has been released for spot ETF.
Bitcoin ETFs Get Nod, Spot Futures Declined
The report released on Thursday last week shows that the application was made in line with the Securities Exchange Act of 1934, which is the same being used for Bitcoin (BTC) ETF. Teucrium Bitcoin Futures ETF got approved last week, making it the first such type of ETF to be approved in line with the 33 Act.
Valkyrie made the application for the Valkyrie XBTO Bitcoin Futures Funds in August 2021, which would be used to track the Bitcoin futures contracts. SEC also gave the nod to Bitcoin futures ETFs from VanECK and ProShares, but all applications for spot Bitcoin ETFs have been declined. Other jurisdictions that have given the nod to BTC ETFs include Latin America, Europe, and Canada.
Over the last one year, there have been dozens of applications for ETFs, but a number of companies have withdrawn them. For example, Bitwise withdrew its application and shifted the focus to its spot fund. Although the fund has performed well, many are the people looking forward to greater success with spot ETF. Experts are of the view that a spot Bitcoin ETF is likely to make more financial experts adopt crypto.
According to Eric Balchunas and James Seyffart from Bloomberg, SEC is expected to accept spot Bitcoin by mid-2023. In one of the surveys done by NASDAQ, 38% of financial advisors believe that the SEC will ultimately approve spot crypto ETFs.