The United States Securities and Exchange Commission has approved the listing of a new Bitcoin futures-based exchange-traded fund.
The new Bitcoin futures ETF will begin trading on the CBOE BZX Exchange on November 16 under the name VanEck Bitcoin Strategy ETF.
Recently, the SEC has not approved VanEck’s spot Bitcoin ETF due to uncertain regulations of the decentralized cryptocurrency market, which creates additional risks for US investors. While this rejection was a blow to many investors, ETFs linked to Bitcoin futures contracts have already been approved.
So the recently approved XBTF will not be the first Bitcoin-related ETF; ProShares BITO, which started trading on October 19, became the first fund for US investors. The launch of the ETF was welcomed by the industry as it was a huge success.
Second ETF product Valkyrie’s Bitcoin ETF has been trading under the code BTF since October 22, when Bitcoin was trading around $60,720.
Futures-based Bitcoin ETFs remain the only possible solution for US institutional investors to invest in the cryptocurrency market.