The US Securities and Exchange Commission (SEC) has approved Bitcoin Futures ETFs applications from NYSE Arca and Teucrium that could open the door for spot Bitcoin ETFs.
In a filing on Wednesday, April 6th, the US securities regulator announces that NYSE Arca and Teucrium are now allowed to issue a Bitcoin Futures Exchange-Traded Fund (ETF). The most notable thing about the Teucrium Bitcoin Futures ETF application is that it was filed under the Securities Act of 1934, the regulation under which spot bitcoin ETFs are filed.
Teucrium Bitcoin Futures ETF Could Open the Door for Spot ETFs
Teucrium, also known as Teucrium Trading, is an ETF provider focused solely on US Agriculture. The company offers several exchange-traded funds (ETFs) focused on agriculture and crops including Teucrium Corn ETF, Teucrium Wheat ETF, Teucrium Soybean ETF, Teucrium Sugar ETF, and Teucrium Agriculture ETF.
According to the SEC filing, Teucrium filed the application for a Bitcoin Futures ETF in May of 2021. The SEC delayed its decision on the planned Teucrium Bitcoin Futures Fund in January, noting at the time that it would rule on the product by April 8. Although the Teucrium application was to list a Bitcoin Futures ETF on NYSE Arca, it was filed under the Securities Exchange Act of 1934 which requires a different regulatory process for approval.
The already-approved bitcoin futures ETFs filed by other companies were under the Investment Company Act of 1940. As Wealth Growth Insights reported, ProShares’ ETF BITO was the Bitcoin Futures ETF approved by the commission in October 2021. It was also filed under the ‘40s Act.
The Securities Act of 1934 is the regulation under which spot bitcoin ETFs are filed. Until now, the SEC has rejected all spot bitcoin ETF applications citing that bitcoin markets lack surveillance and may be subject to manipulation.
Now the Teucrium application under the Securities Act of 1933 has been approved, many believe this will open the door for spot Bitcoin ETFs. Bloomberg analyst James Seyffart said earlier this year that the SEC decision on the Teucrium ETF application was crucial for the arrival of spot Bitcoin ETFs. In one of his tweets, he said:
13/x I expect to have a stronger opinion and understanding of the situation when we receive the SEC decision letter on @TeucriumETFs' filing somewhere around 4/8/2022. And will be paying close attention to the SEC's language. Especially compared to the coming spot denial letters.
— James Seyffart (@JSeyff) January 5, 2022
“I expect to have a stronger opinion and understanding of the situation when we receive the SEC decision letter on @TeucriumETFs’ filing somewhere around 4/8/2022. And will be paying close attention to the SEC’s language. Especially compared to the coming spot denial letters.”
Currently, ProShares, Valkyrie, and VanEck are allowed to list and trade Bitcoin Futures ETF in the US. But the crypto community is waiting for the next big moment and that is the approval of spot Bitcoin ETF by the US securities regulator.
