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SEC Greenlights Valkyrie Bitcoin Futures ETF, but No Sign of Spot Yet

1 min
Updated by Geraint Price
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In Brief

  • SEC approves Valkyrie Bitcoin Futures ETF.
  • Teucrium also recently received approval for an ETF.
  • Spot ETFs seem unlikely to happen without more regulation, recent developments suggest.
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The United States Securities and Exchange Commission (SEC) has approved a futures exchange-traded fund (EFT) application from Valkyrie. 

This marks yet another ETF approved by the SEC, which has been accepting futures ETFs but so far no spot ETFs.

The application was filed under the Securities Exchange Act of 1934 law, using a 19b-4 form. Teucrium also used this form to win approval.

The Valkyrie Bitcoin Futures ETF was first filed in Aug and tracks bitcoin futures contracts. Regarding the potential of manipulation, the SEC said that “it is unlikely that trading in the ETP would be the predominant influence on prices in that market.”

SEC has approved a number of futures ETFs recently

It is not the first futures ETF to be approved by the SEC. The authority has also approved bitcoin futures ETFs from ProShares and VanEck. As for spot ETF approval, it has said that it will not do so for fear of inadequate investor protection in the market.

Several companies have filed for ETFs in the past 12 months, with some pulling out, like Bitwise, which shifted focus to a spot fund instead. The funds have done well, but many are hoping for great success with the arrival of a spot ETF.

Teucrium’s bitcoin ETF was also recently approved. In the approval letter, the SEC hinted that it would allow spot ETFs if it had more supervision and control over the crypto market. 

Specifically, it asked for surveillance sharing of crypto exchanges. This is unlikely to happen voluntarily by crypto exchanges as it goes against the spirit of decentralization.

It’s clear that the market will have to undergo more regulation before a spot ETF is approved. But with the regulatory actions increasing by the day, it may happen in the medium-term future.

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
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