The US Securities and Exchange Commission (SEC) has been forthcoming with the approval of a futures-based exchange-traded fund (ETF). The latest Bitcoin futures ETF to be approved is VanEck’s.
An official notice from the Chicago Board Options Exchange (CBOE) stated that VanEck’s Bitcoin Strategy ETF would start trading on November 16 under the ticker symbol, XBTF.
SEC approves VanEck’s Bitcoin futures ETF
VanEck was among the first asset management firms in the US that applied for a Bitcoin ETF. However, with the SEC showing a preference for futures ETFs compared to spot ETFs, VanEck filed for the latter, which has since been approved.
VanEck will be joining the growing list of firms that have been approved to offer Bitcoin futures ETFs. The firms that are already dealing in these ETFs include ProShares and Valkyrie.
VanEck is a US management firm that was launched in 1955. It specializes in gold-based ETFs, mutual funds and more. After being among the first firms to file for an ETF filing with the SEC, it became popular with the crypto community. The firm has filed multiple ERTF filings with the commission, but only its futures ETF has gone through.
SEC still prefers futures ETFs
Before VanEck’s Bitcoin futures ETF was approved, the commission had officially rejected the firm’s filing for a spot Bitcoin ETF. The regulator explained that the reason for declining the ETF filing was that its proposed rule change failed to meet the required standards to “prevent fraudulent and manipulative acts and practices.”
The SEC lists investor protection and public interest as some of the reasons that deter the listing of a spot Bitcoin ETF. The SEC chair, Gary Gensler, has previously stated that the regulator was open to approving futures ETFs compared to spot.
While asset management firms are now filing for futures-based ETFs, Bitwise has announced that it is hopeful that a spot Bitcoin ETF would be approved. Last week, Bitwise dropped its application for a futures-based ETF.
According to its Chief Investment Officer, Matt Hougan, Bitwise would continue its pursuit for a spot Bitcoin ETF because that was what its clients wanted. “So Bitwise will continue to pursue that goal, and we will look for other ways to help investors get access to the incredible opportunities in crypto,” Hougan stated.
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