VanEck launches Bitcoin (BTC) futures ETF after SEC rejects spot ETF

Mon 15 Nov 2021 ▪ 23h00 ▪ 3 min read — by Felix Meyer

In October, the US Securities and Exchange Commission (SEC) finally approved VanEck’s futures-based exchange-traded fund (ETF). The event came as one of the most striking in autumn 2021, catalysing a huge fuss and yet another splash of the crypto frenzy. However, the spot ETF turned out not so joyful.

VanEck’s futures ETF approved!

VanEck has become one of the first asset management firms in the US to get its Bitcoin ETF approved. However, now the crypto world is struck by the SEC showing preference for futures ETFs and rejecting spot ETFs, proven by the latest VanEck’s case. Discarded still not broken, the firm is now preparing to launch its third crypto futures-based fund.

As the Chicago Board Options Exchange (CBOE) reports, VanEck’s Bitcoin futures ETF will be officially launched on 16th November and is expected to trade under the ticker XBTF.

“While a physically backed Bitcoin ETF remains a key goal, we are very pleased to be providing investors with this important tool as they build their digital asset portfolios,” VanEck’s director of digital assets Kyle DaCruz stated in the recent launch statement.

The company’s initial purpose was to create a spot BTC fund, but this intention reportedly urged the SEC to reject the application. The official reason was non-compliance with the required standards and inability to prevent fraudulent and manipulative actions, while in fact, it was VanEck’s longing for a spot Bitcoin ETF. The thing is, the SEC gives its preference to futures ETFs, arguing that such funds are way safer than the spot ones.

Following the announcement by the SEC Chairman Gary Gensler that Bitcoin futures ETFs could have a good chance of approval, VanEck filed another application, this time for a futures fund. In the end, this particular application was successfully approved.

SEC postpones spot ETF decision

The crypto community is rather dissatisfied with the current situation with spot BTC ETFs, since many investors opt for physically-backed funds. For example, Bitvise recently gave up its filing for a futures ETF hoping for the early approval of its spot BTC ETF. Clients were the ones who influenced the company’s decision.

The SEC’s words that spot ETFs are less secure than futures ones have been repeatedly questioned by a plethora of crypto investors as well as some of the US congressmen.

Brand new Bitcoin ETF launches this week, which is likely to cause yet another wave of crypto excitement. Meanwhile, the issue of numerous spot applications’ approval remains unsolved. According to some experts, the SEC will get to approve them at the beginning of 2022, however, VanEck’s recent rejection suggests the opposite.

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Felix Meyer avatar
Felix Meyer

Le trading et l'analyse technique sont mes spécialités depuis 4 ans. Je décortique le marché et vous partage mon expertise.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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