SEC Approves Teucrium’s Bitcoin Futures ETF
Teucrium’s acceptance may portend the approval of a future spot bitcoin ETF.
The Securities and Exchange Commission of the United States has approved the launch of a bitcoin futures exchange-traded fund by NYSE Arca and Teucrium.
The SEC confirmed the clearance in a posting on its website on Wednesday, joining a growing list of bitcoin futures ETF issuers.
Notably, Teucrium and NYSE Arca submitted the application with the Securities and Exchange Commission under the Securities Exchange Act of 1934, submitting a 19b-4 form to the SEC. Other businesses filed previously authorized bitcoin futures ETFs under the Investment Company Act of 1940, which has a somewhat different regulatory procedure for approval.
Approving Teucrium’s application under the Securities Act of 1933 might possibly pave the way for a spot bitcoin ETF, Bloomberg analyst James Seyffart suggested earlier this year on Twitter. Proponents of crypto ETFs have claimed that “similar circumstances must be handled similarly,” he added, citing Grayscale, which recently filed to convert its Grayscale Bitcoin Fund (GBTC) to an ETF. (Grayscale is a subsidiary of Digital Currency Group, the parent company of CoinDesk.)
So far, the SEC 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.
ProShares, Valkyrie, and VanEck are among the companies permitted to list and trade bitcoin futures exchange-traded funds in the United States so far. Valkyrie has also filed for a 33 Act bitcoin future exchange-traded fund. Its applicability is exceptional.