SEC Approved Another Bitcoin Futures With No Spot Product in Sight
Chief Investment Officer Steven McClurg told that Valkyrie Investments is anxious to launch its recently approved Bitcoin Futures Fund (XBTO). The vehicle was filed under the Securities Act of 1933 ('33 Act).
A debut date has yet to be announced by the company.
Last October, the SEC approved the first ETFs that invest in bitcoin futures contracts. ProShares was the first to market with a fund like this, followed by Valkyrie and VanEck. The Investment Company Act of 1940 ('40 Act) was used to file the three products.
Last month, regulators approved Teucrium's first bitcoin futures ETF, filed under the '33 Act.
The verdict weakens the SEC's justification for denying spot bitcoin ETFs, according to Grayscale Investments CEO Michael Sonnenshein, who noted that the agency previously highlighted discrepancies between the '40 Act and the '33 Act as a reason for denial. Grayscale wants to convert its Bitcoin Trust (GBTC) into an ETF, and the SEC is anticipated to make a judgment in July.
Valkyrie is one of many ETF issuers attempting to bring a Bitcoin-specific ETF to market. Even though similar investment vehicles exist in Canada, Europe, and Latin America, US regulators have so far rejected all attempts to introduce an ETF.
McClurg said,
"As for a spot Bitcoin ETF, we do believe that today's news puts us closer to an eventual approval, but would hesitate to put a timeline on such a decision and are instead keen to continue working with regulators to help further satisfy warranted concerns and collaboratively work towards progress in this rapidly evolving asset class."
Though executives at crypto firms are unsure when the SEC would approve a spot bitcoin ETF, most believe it won't be available until 2023 at the earliest.