SEC Approves Bitcoin Futures ETF from Teucrium

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

Teucrium has 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 the registration of the application in accordance with the Law on Investment Companies of 1940.

BCFU registration could potentially open the door for a spot bitcoin ETF. In January, a similar scenario was allowed by Bloomberg analyst James Seyffart.

The Law on Investment Companies of 1940 also complies with the application of Grayscale Investments to register the GBTC trust as a spot bitcoin ETF. In December 2021, the company admitted that the Commission violated the law when approving a futures-based instrument for the first cryptocurrency.

The final verdict on Grayscale's statement should be expected on July 6. According to Bloomberg analyst Eric Balchunas, 95% of stakeholders support the launch of a financial instrument.

Prior to that, the agency's analysts predicted a change in the regulator's position to a positive one by mid-2023.

Recall that the Commission has not yet approved any applications 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 Law on the suppression of fraudulent or manipulative practices.