SEC Approves Valklyrie Bitcoin Futures ETFMay 9, 2022 10:48 pm
Although there hasn’t been a spot Bitcoin ETF that has been approved by the SEC yet, the industry has managed to get a few Bitcoin futures ETFs approved so far.
This past week, the committee just approved Valkyrie’s futures exchange traded fund application which marks an additional futures ETF that investors now have access to.
The previous Bitcoin futures ETF that was approved was the one that was submitted by Teucrium which was the first to be approved under the 33 Act.
The fact that there is no spot Bitcoin ETF that has been approved yet can be considered quite peculiar given that many other countries such as Canada, Europe, and Latin America have all approved spot ETFs already.
As a result, many believe that the regulatory environment within the country is not yet as crypto-friendly as some of those other regions in the world that were mentioned.
The SEC approves the issuance of another new Bitcoin futures ETF
On May 6, the U.S. Securities and Exchange Commission (SEC) approved the Valkyrie bitcoin futures exchange-traded fund (ETF) application, making it the second bitcoin ETF to be authorized by the SEC.#BTC#Crypto pic.twitter.com/LXeYy3fl48
— Lisa (@Lisa835049781) May 7, 2022
The past year has seen a slew of applications for ETFs, with several companies withdrawing their applications, such as Bitwise, which redirected attention to a spot fund instead.
The funds have performed well thus far, although many people are hoping for greater success in the future with the introduction of a spot ETF.
A recent Nasdaq poll found that a spot Bitcoin exchange-traded fund may lead to more financial advisers adopting cryptocurrencies.
According to Bloomberg analysts Eric Balchunas and James Seyffart in March, the SEC could accept a spot Bitcoin ETF as early as mid-2023, based on a proposed amendment to alter the definition of “exchange” within the regulator’s rules.
According to the survey by Nasdaq, however, only 38% of financial advisers thought it probable that the SEC would eventually approve a spot cryptocurrency ETF, with 31% disagreeing.
As mentioned before, it can be considered critical that one gets approved as it would enable the flow of more capital that is usually tied to traditional financial markets to finally start flowing into the crypto markets.
This is seen as necessary for some in order for the industry to accelerate its growth to achieve mass adoption within the country.
Right now, industry experts are still saying that it is difficult to put a timeline on when exactly the first one will finally be approved, but large asset managers like Grayscale have already stated that they plan to put as much pressure on the SEC as possible to make it happen soon.
To be specific, the firm has stated “all options are on the table” and it could be likely that many other financial institutions may soon join this trend.
SEC approves Valkyrie's Bitcoin futures ETF
Last month, the watchdog gave the thumbs-up to Teucrium's Bitcoin futures ETF, which is the first such vehicle to be approved under the '33 Act. pic.twitter.com/A7zYq55M9s
— Myamya (@FVGBNM6) May 6, 2022
Unlike its Canadian, European, and Latin American counterparts, the US regulatory watchdog has refrained from approving any physically-backed ETF, citing that the Bitcoin market lacks surveillance and may be subject to manipulation.
In a recent interview with Bitcoin proponent Anthony “Pomp” Pompliano, Sonnenshein said a spot Bitcoin ETF continues to be a matter of when, not a matter of if.
“It is tough to put a timeframe on it. We will continue to advocate on behalf of our investors until that approval comes through.
In the five-six years that we have been dealing with the SEC and regulators more generally, a lot has changed.
Let’s remember that, they have a tough job. It is tough as a regulator to develop really good regulations when the industry and the asset class underneath it, continues to change.”
— BTC Times (@btc) May 9, 2022
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