The SEC clears VanEck’s Bitcoin Futures ETF next week, making it the second company to be approved for trading on the NYSE with a Bitcoin ETF.
The new exchange-traded Bitcoin futures fund will trade on Wall Street next week, according to the SEC, and New York-based wealth manager VanEck’s Bitcoin Strategy ETF will go live after October 23. VanEck ETF trading will begin as soon as possible after the Effective Date. The first Bitcoin ETF in the US was launched a day ago and became hugely popular. The ProShares BTC ETF traded $ 280 million in stocks in about 30 minutes, and by the end of the trading day it was trading around $ 1 billion. Now the SEC has approved the VanEcks Bitcoin Futures ETF in the green light.
The VanEcks product falls into the same category of ETFs that give investors greater exposure to the world’s largest cryptocurrency by trading stocks, which are contracts that bet against the price of BTC. Read profile:
“Futures are financial contracts whose value depends on or is derived from the underlying reference value. In the case of Bitcoin futures, the underlying reference value is Bitcoin. Bitcoin and Bitcoin futures have historically been more volatile than traditional asset classes. You should be ready to lose all of your investment. “
VanEck applied for ETF approval multiple times, but the SEC denied each time, citing concerns that the market could be easily manipulated. However, SEC chairman Gary Gensler has signaled that the commission would be ready to approve an ETF based on futures contracts as the futures market is regulated by the CFTC. PROShares filed a prospectus with the SEC after it went into effect, which only states that the Commission will allow ETFs to trade next week. VanEck has filed the same type of documentation, meaning the SEC has also given the go-ahead for their funds to launch.
While it is still not a true Bitcoin ETF, investors are still interested in ETF futures. These types of funds offer investors the opportunity to get more involved with cryptocurrencies without having to buy, sell, and store them themselves, which can be difficult for those unfamiliar with exchanges, translators, or wallets. The SEC is expected to approve four more ETFs, including the Galaxy Bitcoin ETF, the AdvisorShares Managed Bitcoin ETF, the Invesco Bitcoin Strategy ETF, and the Valkyrie Bitcoin Strategy ETF.
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