VanEck Bitcoin Futures ETF Gets SEC Greenlight After Spot Rejection
17 November 2021 - 4:00AM
NEWSBTC
VanEck has had a rollercoaster of a month with its Bitcoin ETFs.
After three Bitcoin Futures ETFs were approved by the Securities
and Exchange Commission, Spot ETFs became the next big thing as
they posed a greater advantage for traders. However, this would
prove to not be happening anytime soon as the VanEck Spot Bitcoin
ETF was rejected by the regulatory body. However, all hope was not
lost for the investment fund as it had doubled back with a bitcoin
futures ETF. This time around, VanEck found success as the SEC has
approved this ETF. Related Reading | Crypto Analyst Says
Bitcoin Won’t Hit $100,000 This Year, When Will It Hit? VanEck ETF
Set To Trade On Tuesday The timing for the VanEck Bitcoin Futures
ETF approval could not be better. Interest in the ETFs had died
down considerably after an incredibly successful introduction into
the market. What followed had been weeks of low performance as
traders cashed out the gains that they had made from investing in
the ProShares ETF – the first publicly traded bitcoin ETF – and had
seemingly moved on to other options. BTC price hits $60K | Source:
BTCUSD on TradingView.com With the VanEck ETF set to trade on
Tuesday, it is expected that this may give the asset a bit of bump
after it had been beaten down from the $69,000 ATH. It may not be
the Spot ETF it had hoped for but it is no doubt momentous as it
will be only the fourth publicly traded bitcoin ETF in the United
States. Furthermore, this could spark renewed interest in futures
ETFs, leading to high volumed being traded. The futures ETF which
had been filed with the Securities and Exchange Commission in
October will begin trading on Tuesday on the Chicago Board Options
Exchange (Cboe). The ETF will trade under the ticker XBTF,
according to a notice published by the CBOE. Bouncing Back After A
Rejection The VanEck Spot Bitcoin ETF had gotten a rejection from
the SEC last Friday after the regulatory body had reviewed the
filing. The reason given for the rejection was that the CBOE could
not provide evidence that the fund could protect investors from
fraudulent trading. So with the safety of investors’ funds in mind,
the SEC had stamped out the ETF. Related Reading | Confirmed:
AMC Now Accepts Bitcoin, Ethereum, Two Other Cryptos, Dogecoin To
Follow This rejection had led to the closing of long positions in
the market, as reported by Bitcoinist, but this would not last long
as the digital asset had had a relatively green week following
this. It did however leave bulls in a tight spot as they now had to
do more to keep the asset from sliding. Nevertheless, VanEck seems
to have taken the rejection in stride. The rejection of the VanEck
Spot ETF has raised speculations for when the space may see the
first approval. Grayscale had also filed to have its flagship
bitcoin fund converted into a Spot ETF but there has not been any
definite action taken on it by the SEC. Featured image from
CoinDesk, chart from TradingView.com
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