Key facts:
The SEC approved a bitcoin futures ETF the same week it rejected a spot one.
Specialists believe that under the law that was approved, a bitcoin spot ETF could be allowed.
The United States Securities and Exchange Commission (SEC) announced on April 6 the approval of a bitcoin futures exchange traded fund (BTC ETF) of the Teucrium company on NYSE Arca. This happens just a week after having rejected the request for one based on the current price of the currency, which is known as “spot” or “spot» and is highly anticipated among investors as different companies have been fighting for approval to launch it.
Nevertheless, there are reasons to think that the argument with which approved the new ETF of bitcoin futures could serve to allow a spot one later. This is because it was authorized under a different law than the one that had been used in previous funds.
NYSE Arca and Teucrium applied for this fund under the Securities Exchange Act of 1934, which is highlighted by Act 33, which prioritizes protection against fraud. This marks a change in the approval process, as already approved bitcoin futures ETFs filed by other companies were under the Investment Company Act of 1940.
The analyst of exchange-traded funds Eric Balchunas communicated upon hearing the news that this situation stands out because it was filed under Law 33, which Gary Gensler, the chairman of the SEC, has said does not have sufficient investment protections against Law 40. Therefore, he warned that this is a good sign for bitcoin ETFs spot.
The 1940 law follows a slightly different regulatory path to passage because it sets the standards for the mutual fund industry. While the 1934, better known as “33” for its act, focuses on fraud protection, something the SEC has referenced in rejecting spot ETFs citing concerns about possible market manipulation.
Earlier this year, ETF analyst James Seyffart said that an approval under the Securities Act of 1933 can potentially open the door to a spot bitcoin ETF.
Upon Teucrium’s approval, James Seyffart stressed also that similar situations should be treated in the same way. So, considers that, if the Grayscale fund is denied launching a cash ETF, there would be a stronger case for a lawsuit against the SEC.
SEC continues to reject bitcoin spot ETF but opens a glimmer of hope
Despite the fact that the SEC has rejected every bitcoin spot ETF application for years, Eric Balchunas and James Seyffart believe that 2023 could be the time when the first ones become available. This was commented on weeks ago, as CriptoNoticias reported, because the SEC has proposed expanding the definition of “exchange” or “exchange”.
This rule change would amend the law to add to platforms “that make trading of any type of value available,” which would include cryptocurrencies. In this way, Bitcoin spot ETFs could be integrated. And even more so, added to the fact that they could rejoice over the 1933 Act which passed the new Teucrium fund.
The arrival of a bitcoin spot ETF on Wall Street would be a historic milestone for the market that would undoubtedly impact the price of BTC if it generates high demand among investors. Currently this type of asset is available in its neighboring country, Canada, and a few other countries in the world. It works mainly for people or institutions that want to benefit from the price of bitcoin from a traditional investment method. without directly buying the cryptocurrency.