September 27, 2022

SEC Approves Teucrium Bitcoin Futures ETF

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The U.S. Securities and Exchange Commission (SEC) has approved an application to launch a bitcoin ETF futures from exchange-traded funds provider Teucrium.

According to the document, the listing of the financial instrument is planned on NYSE Arca under the ticker BCFU. The price of shares of settlement bitcoin-ETFs will repeat the dynamics of futures traded on CME based on the first cryptocurrency.

Teucrium applied to launch BCFU in May 2021. It complies with the provisions of the Securities and Exchange Act of 1934.

Earlier, the head of the SEC, Gary Gensler, said that for the possible approval of such instruments, their underlying assets should be CME bitcoin futures. He also mentioned filing an application under the Investment Company Act of 1940.

BCFU registration could potentially open the door to a spot Bitcoin ETF. In January, a similar scenario was made by Bloomberg analyst James Seiffart.

The Investment Company Act of 1940 also complies with Grayscale Investments’ application to register the GBTC Trust as a Bitcoin Spot ETF. In December 2021, the company admitted that the Commission violated the law when approving an instrument based on futures for the first cryptocurrency.

The final verdict on Grayscale’s claim is expected on July 6th. According to Bloomberg analyst Eric Balciunas, 95% of stakeholders support the launch of a financial instrument.

Prior to this, the agency’s analysts predicted a change in the regulator’s position to positive by mid-2023.

Recall that the Commission has not yet approved a single application for the launch of a spot bitcoin ETF. At the same time, the agency allowed the launch of exchange-traded funds based on futures for the first cryptocurrency from VanEck, Valkyrie Investments, and ProShares.

In February 2022, Gensler explained the situation by the inconsistency of the applications received by the department with the standards of the Securities Act to suppress fraudulent or manipulative practices.

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