SEC Approves Valkyrie's Bitcoin Futures ETF: Is There Hope For a Bitcoin Spot ETF?

The United States Securities and Exchanges Commission (SEC) approved Valkyrie’s Bitcoin BTC/USD Futures exchange-traded fund (ETF) for trading.

What Happened: Valkyrie’s Bitcoin Futures ETF was approved for listing under the Securities Exchange Act of 1934 using a 19b-4 form, according to the SEC document published Thursday. This is the same act that Bitcoin spot ETFs are attempting to be approved under, with Grayscale recently voicing discontent over alleged inconsistencies in treatment for those filings compared to the future-based ETF filings.

The popular Bitcoin Archive Twitter account commented on Valkyrie's ETF approval: "All spot ETF applications have been filed under this act...perhaps some light at the end of the tunnel."

See Also: How To Earn Free Crypto

Why It Matters: Grayscale's legal counsel Davis Polk & Wardwell wrote in a recent letter to the SEC that the regulator refused to approve a Bitcoin spot ETF over concerns of market manipulation. Still, they pointed out that the futures tracked by the already-approved ETFs base their prices on the performance of spot markets.

The lawyers noted that Teucrium's Bitcoin futures ETF was a notable example because it made the alleged inconsistencies apparent by being approved under the Securities Exchange Act of 1934 — as opposed to the Investment Act of 1940.

This is the same act underlying both Valkyrie's Bitcoin futures ETF and Grayscales Bitcoin spot ETF filings, which they claim shows that the "SEC can’t use the distinctions between the ‘40 Act (which is what all prior futures ETFs were approved under) anymore."

Bitcoin was trading at $36,016 on Saturday morning, up 0.17% in the past 24 hours.