SEC Approves VanEck’s Bitcoin Futures ETF To Start Trading Next Week

SEC approves VanEck’s Bitcoin futures ETF to start trading next week which makes the company the second one to be approved with a Bitcoin ETF to trade on NYSE so let’s read more in our latest Bitcoin news today.

The new Bitcoin futures exchange-traded fund will start trading on Wall Street next week as per the SEC filing and the New York-based asset management company VanEck’s Bitcoin Strategy ETF will go live after October 23 the filing noted. Trading the VanEck ETF will start as soon as practicable after the effective date. The first Bitcoin ETF in the US has launched a day ago and it became quite popular. ProShares BTC ETF traded $280 million worth of shares in about 30 minutes and by the end of the trading day, about $1 billion had been traded. So now, the SEC approves VanEcks Bitcoin futures ETF in the wave of green lights.

VanEcks product will be of the same type of ETF which will give the investors more exposure to teh world’s biggest crypto by allowing them to trade shares that represent contracts betting on the price of BTC. The filing read:

“Futures contracts are financial contracts the value of which depends on, or is derived from, the underlying reference asset. In the case of Bitcoin Futures, the underlying reference asset is Bitcoin. Bitcoin and Bitcoin Futures have historically been more volatile than traditional asset classes. You should be prepared to lose your entire investment.”

VanEck applied for an ETF approval plenty of times but the SEC said no every single time, citing concerns that the market can be easily manipulated. However, SEC chairman Gary Gensler signaled that the Commission will be open to approving a futures-based ETF because the futures market is regulated by the CFTC. PRoShares filed a post-effective prospectus with the SEC which only indicated that the Commission will allow the ETF to start trading next week. VanEck filed the same type of document which means that the SEC also gave the green light to launch its funds.

While still not being a real Bitcoin ETF, the investors are still interested in the futures ETF. These types of funds provide investors with more exposure to crypto without having to buy, sell and store it themselves which can be tricky for those that are not familiar with the exchanges or wallets. The SEC is expected to approve another four ETFs including the Galaxy Bitcoin ETF, AdvisorShares Managed Bitcoin ETF, Invesco Bitcoin Strategy ETF, and Valkyrie Bitcoin Strategy ETF.