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SEC Approves Teucrium Bitcoin Futures ETF Under the Securities Exchange Act, Market Optimistic about GBTC's Transition to Spot ETF

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SEC Approves Teucrium Bitcoin Futures ETF Under the Securities Exchange Act, Market Optimistic about GBTC

Although it is still a "futures" Bitcoin ETF rather than a "spot" one, several senior ETF analysts have pointed out that this Bitcoin futures ETF application is based on the 1934 Securities Exchange Act, which carries significant implications and further enhances the possibility of a spot ETF approval.

Teucrium Bitcoin Futures ETF

The ETF is jointly launched by the issuer Teucrium and NYSE Arca, a subsidiary of the New York Stock Exchange. However, unlike previous ETFs introduced by ProShares, Valkyrie, and VanEck, this ETF is not based on the Investment Company Act of 1940, and the approval process is different.

Bloomberg Senior ETF Analyst Eric Balchunas pointed out on Twitter:

The SEC has approved the Teucrium Bitcoin Futures ETF, noting that it was submitted under the 1933 Act. Chairman Gary Gensler has previously stated that compared to the Investment Company Act, the Securities Exchange Act does not provide sufficient investor protection measures. Therefore, this could be a good sign for spot ETF approvals.

Balchunas further explained that Gensler described the crypto space as the wild west, and without more protective measures, there would be no spot ETFs. The approval of the Teucrium ETF indicates that crypto projects and products compliant with the Securities Exchange Act should not face any issues.

Beneficial for Grayscale GBTC Conversion

Another analyst, James Seyffart, also stated:

The SEC's approval of the Teucrium ETF increases the likelihood of spot ETF approvals. If the SEC were to reject Grayscale's GBTC spot ETF, it would be more favorable for Grayscale to sue the SEC.

Grayscale CEO Michael Sonnenshein emphasized in an interview with Bloomberg on 3/29 tweeted that if the application to convert GBTC into a spot ETF is rejected, they would not rule out suing the SEC.

The current deadline for the SEC to approve or reject Grayscale's spot ETF application is July 6th of this year.