The SEC Gives the Go Ahead to Teucrium for Its Bitcoin Futures ETF Fund

The SEC Gives the Go Ahead to Teucrium for Its Bitcoin Futures ETF Fund

According to a report by the Securities and Exchange Commission on April 6, Teucrium can now proceed with fund distribution related to its Bitcoin futures ETF. This decision comes after long delegations on whether the commission would change the rules concerning the listing of its trade and shares on Arca. The report goes on to mention that the NYSE Arca. Inc. was responsible for filing the rule change proposal to the SEC.

SEC Greenlights Teucrium’s BTC Futures 

In turn, the commission took time to delegate on whether to approve, disapprove, or take another path to deal with the request put forward. It is important to note that the approval fell under a different act (the Securities Exchange Act of 1934) unlike other BTC futures ETF filed under the Securities Exchange Act of 1940. 

The success of Teucrium’s ETF request is creating more hope for the wider crypto industry in the US, as more companies hope for a breakthrough. The SEC, which gave the go ahead for the ETF under the Act of 1933, has been notorious for rejecting such requests. A recent case is that of Grayscale, which wished to convert its GBTC to an ETF. 

The Wall Street company feels a ray of hope concerning its situation, with some individuals mentioning that the SEC should treat similar situations as they are. However, it is not yet clear where Bitcoin ETFs for spot not futures, stand with the commission. So far, the SEC continues to express worries related to the regulation of the spot Bitcoin ETF space. However, companies continue to try their luck in the hopes of a different outcome during the commission’s delegations.

Teucrium Rule Change

The rule change filed in July 2021 appeared on the Federal Register a month later, with the SEC encouraging comments on the general thoughts of individuals on the matter. Since then, it took the commission a while to settle on a decision, severally extending the action period. In March this year, the SEC finally began with a partial amendment to the proposal. 

In the proposal, the NYSE Arca put forth the example of the CME futures trading, offering BTC and MBT contracts that are settled daily. The Teucrium Fund will follow the closing prices of CME settlements, while offering similar contracts to the company. Furthermore, it assured that the Teucrium Fund had no intention of overstepping the futures contracts to cash settlement.

Notably, the commission had to ensure that the final say aligned with its responsibility towards a free market economy, prevent fraud or money laundering, combat market manipulation, and more. Therefore, the evaluation of whether Teucrium falls in line with all the securities exchange regulations was inevitable. 

Bitcoin ETFs Future in the US

When the Canadian government began approving BTC and ETH ETFs in the country, it was a probe for the US financial watchdogs to consider it. After all, there showed a lot of potential in what crypto companies coils achieve from the funds. 

While there are still obstacles on the way to notable success for ETFs in the country, the hope is not yet eroded from investors. Currently, more companies like ProShares are still filing for ETF approval from the commission, looking towards Teucriums’s success as a beam of light. Nonetheless, it is still a worry whether the SEC will be more open to ETFs and other crypto undertakings within the US. 

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