Valkyrie’s XBTO Bitcoin (BTC) The Futures Fund has become the last ETF to gain approval from the U.S. Securities and Exchange Commission (SEC).
Valkyrie’s Application Has Different Features From Previous Applications
Valkyrie filed her application using the Securities Exchange Act of 1934 and filed a 19b-4 form with the SEC. Most of the Bitcoin futures ETFs previously approved so far were covered by the Investment Company Act of 1940, which required a different supervisory pathway for approval.
Valkyrie’s ETF is the second application approved under this older law, after the Teucrium ETF. Both companies filed applications under the “Act 33”.
The firm is now offering its investors the Valkyrie Bitcoin Strategy ETF (BTF), which mainly invests in BTC futures contracts.
The SEC said in a statement that “trading in this ETP product is not expected to have a dominant effect on prices in the CME Bitcoin futures market.
Bitcoin Futures Applications Accepted Under “Act 33” Show Promising Spot ETF
Applications for Spot Bitcoin ETFs, on the other hand, are made uniformly in accordance with Law 33. The SEC has so far rejected such applications without exception on the grounds that they are “too risky”. With the approval of two Bitcoin futures ETFs under the same law cryptocurrency industry hopes the spot BTC ETF is also not far from approval.
However, despite such positive developments, the BTC price continues to decline at the time of this writing. BTC, which has fallen by 8.59% in the last 24 hours, is trading at $ 36,052.
*Not investment advice.