SEC judgment on the Bitcoin Futures ETF from Teucrium could affect spot funds
SEC judgment on the Bitcoin Futures ETF from Teucrium could affect spot funds
- The Teucrium Bitcoin Futures Fund was submitted according to the 1933 Securities-the Ordinance, according to which Spot-Bitcoin ETFs are submitted
- Bitcoin futures ETFs previously approved were submitted in accordance with the Investment Company Act from 1940
The Securities and Exchange Commission is expected to decide this week by a Bitcoin Futures-ETF that was proposed by the Teucrium fund group, and the agency's decision could have an impact on proposed spot bitcoin funds.
The s on the planned Teucrium Futures Fund stated at the time by April 8 Product would decide.
The decision of the regulatory authority on the Teucrium fund "could suspend the agency violations of the regulations and strengthen the arguments for KASSA ETFs," said the analysts of Bloomberg Intelligence.
proshares and Valkyrie Investments introduced Bitcoin ETFs in October after they received the approval of the SEC. These funds, which were submitted according to the 1940 investment, were excluded from the 19b-4 process, said James Seyffart, Analyst at Bloomberg Intelligence ETF, during a press conference on 4 January etf prime-podcast which in his opinion imposes the obligation to clear the concerns of the commercial and market departments of the Sec.
The Teucrium The Bitcoin Futures Fund (BCFU) was submitted under the Securities Act from 1933-the Ordinance, according to the Spot-Bitcoin-ETFS. The SEC has rejected Spot bitcoin ETFs proposed in recent months and stated that the Bitcoin markets are not monitored and may be manipulated.
"The view of the SEC on the market in previous answers indicated that they would reject the Teucrium fund, but we believe that this is now unlikely that rejections could open the agency for violations of the Administrative Procedure Act," Eric Balchunas, Analyst from Seyffart and Bloomberg Intelligence, wrote in a research note. "Conversely, if the funds are approved by Teucrium, the SEC has to thread a needle to explain why the CME-Bitcoin futures market has no significant size, but is good enough for ETFs."
The SEC Chairman Gary Gensler said in August
General known as the ’40 Act, he focuses on the disclosure of information about the fund and its investment goals as well as the structure and operation of investment companies towards the investing public, according to the website of the Sec. The Wisdomtree fund group changed its Bitcoin Trust in December to add certain requirements of the 40s Act to the proposed product, such as: B. the use of the US bank as a qualified custodian bank and the daily disclosure of your portfolio stands and the net inventory value per share. Teucrium is of the opinion that the 1933 law offers "appropriate investor protection, so that different regulatory treatment of BCFU is not justified by Bitcoin ETFs," said W. Thomas Conner, a Vedderprice lawyer who represents Teucrium, in a letter dated September 1st to sec. A Teucrium spokesman rejected a statement. "The reason why people are interested is that earlier comments from Gensler were so clear in mentioning the 40s law as the appropriate place for a Bitcoin futures product," said Dave Nadig, Chief Investment Officer and Director of Research at ETF Trends and ETF Database, said Blockworks. "I am quite skeptical that you will simply let the Teucrium application go through, and I don't really see a big demand for it." SUMIT ROY, crypto editor and analyst at ETF.com, said that the decision about the product proposed by Teucrium could have an impact on which fund structures the SEC looks at benevolently, but nothing will change the chances that a spot bitcoin ETF is launched. "This has less to do with the fund structure than to bring the cryptocurrency industry to the SEC supervisory authority," said Roy. "There are positive movements on this front, but a spot bitcoin ETF is still far away, regardless of what happens to this special Bitcoin Futures ETF." Seyffart and Balchunas Last month in a research note said that they do not assume that the SEC will approve a spot bitcoin ETF before mid-2023. Finally, the agency rejected a Bitcoin ETF application from the fund groups Ark Invest and 21shares, it means Submission from March 31st . A spokesman for ARK Invest did not immediately answer a request for comment . . The post-second judgment about Teucriums Bitcoin Futures ETF could affect Spot funds is not a financial advice.