VanEck Bitcoin Futures ETF Will Debut on Cboe
Another Bitcoin futures ETF has been approved, but there is still no sign of a spot ETF approval on the horizon.
Key Takeaways
- The product—VanEck Bitcoin Strategy ETF—will be listed under the ticker symbol “XBTF."
- VanEck's Bitcoin-based exchange-traded fund (ETF) backed by futures trading contracts will list on the Cboe BZX Exchange.
- This launch comes shortly after the SEC denied VanEck's request to list a spot ETF.
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The latest Bitcoin futures exchange-traded fund (ETF) from VanEck is set to go live on the Cboe BZX Exchange on Nov. 16.
VanEck’s Bitcoin Futures ETF To Be Listed Tomorrow
VanEck’s Bitcoin-based futures ETF will hit the U.S. market this week.
The product—VanEck Bitcoin Strategy ETF—will be listed under the ticker symbol “XBTF” on the Cboe BZX Exchange this Tuesday. This comes a few days after the U.S. Securities and Exchange Commission had denied VanEck’s listing request for a spot ETF, a trading product tied to the actual price of Bitcoin.
VanEck was the first U.S. asset manager to file a request for a Bitcoin ETF. After years of rejection from the SEC, the firm has finally been able to get approval. VanEck offers a total of 59 ETF products with total assets under management valued at $64.70 billion.
It joins two other notable asset managers—ProShares and Valkyrie—whose futures-backed ETFs are already available for trading across U.S. exchanges.
The recent availability of Bitcoin ETFs has been called a major watershed moment by both crypto enthusiasts and institutional asset managers alike. These ETFs have made it easier for investors to gain Bitcoin exposure without the need for asset custody. The emergence of these ETFs coinciding with Bitcoin’s Taproot upgrade has likely helped fuel the sustained rally seen in the top crypto asset since October.
However, an ETF product backed by actual Bitcoin price rather than futures contracts is yet to be approved in the U.S. Last Friday, VanEck’s request to list a spot ETF was rejected by the U.S. Securities and Exchange Commission, which cited concerns over investor protection. Another leveraged ETF filed by Valkyrie was also dismissed.
The SEC’s risk-based assessment suggests that futures-based ETFs are more likely to be favored by the regulator over spot products. Analysts have also considered the possibility that the first futures-based Ethereum ETF may be allowed in the first half of 2022.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
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