Key Takeaways
- VanEck is set to debut its BTC ETF futures trade in a few days time.
- SEC warns investors of the likelihood of losing all their funds
- Futures contract all investors to taste the waters of cryptocurrencies without hodling any coin
- SEC’s pro stance on ETF futures trade came after futures trade went under the supervision of the CFTC.
According to the SEC's official statement made public on Wednesday, a novel BTC futures ETF is set to hit Wall Street in the next few days. It was noted in the official statement that VanEck, an asset management firm, will debut its BTC Strategy ETF on the NY Stock exchange. and the debut is expected to take place next week. This is coming less than 72hours after the primus BTC futures in the US debuted and almost broke the $1billion trade volume mark in 24 hours.
What VanEck is offering is basically the usual EFT. That is, simply providing cryptocurrency investors with the ability to participate in buying and selling crypto shares that depict contract wagering on BTC's Price.
Accordingly, SEC also shed more light on the nature of futures contracts.``Futures contracts are financial contracts whose value is dependent on the base reference asset," according to the document. "The base reference asset in the case is Bitcoin."
It also hinted at the risk associated with futures ETF trade. it read, “Bitcoin and Bitcoin Futures have generally been more unpredictable than traditional asset classes. You should expect to lose the entirety of your money."
VanEck and a Bevvy of corporations have written to SEC to okay a bitcoin Futures ETF trades that open investors directly to the asset but have repeatedly met a brick wall. SEC’s initial anti stance on ETF trades bears its root on how easily the bitcoin market can be tampered with. but this stance was brought to rest after the futures market came under the watchful eyes of CFTC regulation.
On the 15th of October, ProShares lodged a post-effective prospectus with the security and exchange commission, confirming that the primus BTC futures ETF will commence trading in the following week. VanEck submitted similar paperwork yesterday, indicating the firm has received confirmation to open its fund.
Investors appear to have developed a keen interest in futures ETF, despite the fact that it is not a "real" Bitcoin ETF. These funds nonetheless give investors access to cryptocurrencies without having to HODL the coin themselves, which may prove complex for individuals not conversant with wallets.
In the next few weeks, the Securities and Exchange Commission is anticipated to approve four more Bitcoin futures.
Do you think secs approval of ETF futures trade will build more trust for cryptocurrencies among crypto lovers and newbies? Kindly share your thoughts with us in the comment section.
