SEC approves futures-based Bitcoin ETFs from VanEck and Valkyrie Investments

The U.S. Securities and Exchange Commission (SEC) approved an application to launch a futures-based bitcoin-ETF from asset manager VanEck. The approval takes effect on October 23, with trading set to begin on Monday, October 25.

As with the Bitcoin Strategy ETF from ProShares launched last Tuesday, the underlying asset of the structure will be bitcoin futures on the Chicago Mercantile Exchange. In the future, the list could be expanded with similar products traded on other exchanges registered with the CFTC.

Shares of the fund will trade under the ticker XBTF on the Cboe BZX platform. The firm will charge an asset-management fee of 0.65%, lower than ProShares’ product (0.95%). Both structures are actively managed.

VanEck is still awaiting a decision on another application — on launching a spot bitcoin ETF. The regulator is expected to rule by November 14, 2021.

Another company to win SEC approval for a bitcoin-futures ETF was Valkyrie Investments. Its representative told CoinDesK that the organisation had ‘eliminated all regulatory obstacles’.

Trading of the Valkyrie Bitcoin Strategy ETF shares will begin on Friday, October 22, under the ticker BTF. Initially the company had intended to assign the ticker BFTD to the assets — an acronym that crypto enthusiasts on Twitter often используют. However, the regulator evidently did not approve such an approach.

Just got word Valkyrie is changing the ticker back to $BTF 🙁 SEC prob wasn’t a fan of $BTFD. Also odds growing they will launch tomorrow. Not final yet tho @rayar_anthony https://t.co/MQ44KZ7JXn

— Eric Balchunas (@EricBalchunas) October 20, 2021

On October 19, on the New York Stock Exchange trading of ProShares’ Bitcoin Strategy ETF began, the bitcoin-futures-based ETF from ProShares. In the first 20 minutes, trading volume exceeded $280 million, after two and a half hours — $600 million. By the close of the first day, assets under management were nearly $1 billion — the fund showed the second-most active debut.

By the close of October 20, assets under management of ProShares’ Bitcoin Strategy ETF rose to $1.1 billion. According to Bloomberg analyst Eric Balchunas, the fund became the first ETF to reach $1 billion in two days. The previous record was set 18 years ago — SPDR Gold Shares cleared the milestone in three days.

RECORD BREAKER: $BITO assets up to $1.1b after today, making it the fastest ETF to get to $1b (2 days) breaking $GLD’s 18yr old record (3 days), which is poetically apropos. https://t.co/yGXyfwaogD

— Eric Balchunas (@EricBalchunas) October 20, 2021

As noted by SEC chair Gary Gensler, the futures-based bitcoin ETF from ProShares rests on ‘a highly speculative asset class’ with all the volatility that entails.

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