The US Securities and Exchange Commission (SEC) has approved Valkyrie’s futures exchange-traded fund (ETF) application on May 6. This is the second ETF that has been approved by the SEC, which has previously allowed futures ETFs but has yet to accept spot ETFs. The Valkyrie XBTO Bitcoin Futures Fund was established in August 2021 and tracks BTC futures contracts. The commission also approved Bitcoin futures ETFs from ProShares and VanEck, but has so far declined all applications for a spot Bitcoin ETF. Bitcoin ETFs are now available in Canada, Europe, and Latin America.
💥SEC just approved a 2nd #Bitcoin Futures ETF filed under the "33 act".
All spot ETF applications have been filed under this act…perhaps some light at the end of the tunnel. 🤔
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) May 6, 2022
According to the SEC document, the application was submitted under the Securities Exchange Act of 1934 using a 19b-4 form, the same statute that spot Bitcoin (BTC) ETF hopefuls are banking on – albeit with limited success so far. Last month, the SEC approved Teucrium’s Bitcoin futures ETF, the first of its kind to be approved under the ’33 Act.
Several businesses have withdrawn their applications for ETFs in the last year, including Bitwise, which has diverted emphasis to a spot fund instead. The funds have done well so far, but with the launch of a spot ETF, many people are expecting even better results in the future.
According to a recent Nasdaq survey, a spot Bitcoin exchange-traded fund might lead to more financial advisers adopting cryptocurrencies. However, according to the previously mentioned Nasdaq Inc poll, only 38% of financial advisors believe the SEC will eventually approve a spot cryptocurrency ETF, with 31% opposed.
According to Bloomberg analysts Eric Balchunas and James Seyffart, the SEC might accept a spot Bitcoin ETF as early as mid-2023 if a proposed revision to the regulator’s guidelines to redefine the meaning of “exchange” is approved.
