A supplier of exchange-traded funds (ETFs), Teucrium, has applied to the SEC (Securities and Exchange Commission) for a Bitcoin Futures ETF. The business hopes to offer potential investors a “cost-effective way to gain price exposure to the Bitcoin market.” The Reason For Teucrium Filing An Application To SEC Teucrium, a supplier of agricultural funds, is the most recent company to apply for an ETF. Teucrium offers agricultural commodity ETFs and funds such as maize, wheat, soy, and others. On May 20th, the company applied for a Bitcoin ETF. The ETF will monitor a Bitcoin futures benchmark. If accepted, the ETF will trade under the symbol BCFU on the NYSE Arca exchange. Bitcoin ETFs Are On The Rise The ETF would be listed on the NYSE Arca and would monitor Bitcoin futures contracts, once if approved. The Teucrium Bitcoin Futures Fund (BCFU) differs from other Bitcoin ETFs in that it is physically backed by Bitcoin. It will most likely be a few months before we hear anything from the SEC regarding the ETF’s status, and whether or not it will be accepted is anyone’s guess. The SEC has been reluctant to approve ETFs for a variety of reasons, and recent remarks by officials do not provide much hope. Bitcoin futures help investors to open positions based on the asset’s potential value. A long position indicates that they believe the price of bitcoin would rise, while a short position indicates that they believe the price would drop. This investment vehicle also encourages traders in based tax that is levied sentiment. However, the overwhelming amount of ETF applications suggests that market participants are becoming more optimistic. Bitcoin and the blockchain asset class, in general, have begun to gain traction in the public consciousness, and policymakers have begun to warm up to them. It appears that the acceptance of a Bitcoin ETF is a matter of when not if. ETFs Can Take Some Time To Arrive Bitcoin ETFs have been famously inefficient in the United States, owing to regulators’ concerns about the volatile market and possible market manipulation. Several authorities have made statements to this effect. US Treasury Secretary Janet Yellen has previously stated that investor security is her top priority. A BTC ETF will make the commodity available to the vast majority of the public. The cryptocurrency market’s uncertainty can result in significant losses, which is understandably concerning. Gary Gensler, the newly named SEC Chairman, has also stated that investor security is of the utmost importance. Just a few weeks ago, the SEC deferred its decision to authorize a Bitcoin ETF. Acting Comptroller of the OCC Michael J. Hsu, who was recently named, has also stated that there would be a review of previous rules, which may go either way in terms of regulations. Since the United States’ financial regulators are only now starting to seriously consider cryptocurrency legislation to develop a structure, it could be some time before an ETF is authorized. There has been a significant lack of transparency in the industry, but it is doubtful that the United States will enforce any severe restrictions.
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