US regulators greenlight bitcoin ETFs of Teucrium

The SEC agency welcomed one more new application of the Bitcoin Futures Exchange Traded Fund.

On 6 April, US Securities and Exchange Commission published its approval statement on the Bitcoin futures ETFs application, which was filed by Teucrium and NYSE Arca under the Securities Exchange Act of 1934. 

Here we should not consider this approval of Bitcoin ETFs as a unique success because already many futures ETFs backed by Bitcoin are live, which got regulatory approval in Q4 2021 from the SEC agency. 

The majority of the companies filed applications for Bitcoin Futures ETFs under the Act of 1940 and also collected easy regulatory approval but here Teucrium and NYSE Arca filed applications was under the SEC Act of 1934.

If any same application will get approval under the Securities Act of 1933, that means, ETFs application will get the green light for Bitcoin spot ETFs, according to Bloomberg analyst James Seyffart. 

Bitcoin spot ETFs vs Bitcoin futures ETFs

Both the “Bitcoin Spot ETFs” and “Bitcoin Futures ETFs” are almost the same thing. In some cases, experts believe that Bitcoin spot ETFs ideas are much safe because they remain backed by real bitcoin but still agency has concerns with it because the agency believes that manipulation in the price may take place, whose responsibility falls under the authority of the agency to keep such risks away under any situation, so the agency is not willing to approve any applications of “Bitcoin Spot ETFs”. 

Investment company Grayscale currently provides crypto-backed funds to allow people to invest in cryptocurrencies. Last year, Grayscale applied with the SEC agency to change its popular crypto fund “Grayscale Bitcoin Fund” into Bitcoin spot ETFs. The Grayscale team is almost ready to accept rejection from the SEC agency.

Recent 5 months’ stances and decisions on related filed applications by the SEC Agency showed that the agency is not ready to give regulatory approval for any kind of application. However, Bloomberg analysts noted that a new proposed change in the laws with the SEC may take place in mid of next year, and under those situations, there will be room for the “Bitcoin Spot ETFs” application to get the green signal.

Read also: Miami Mayor wants to see Bitcoin-friendly US president candidate