Sep 14, 2022 11:20
Vedder Price, a global commercial law firm with offices in the United States, United Kingdom and Singapore, has launched a novel bitcoin exchange-traded fund (ETF) that’s unlike other existing Futures ETFs, according to a news release the firm shared with Invezz.
On Wednesday, Vedder Price revealed it had helped unveil Hashdex Bitcoin Futures ETF – the first futures-backed Bitcoin ETF exclusively registered and regulated under the US Securities Act of 1933. The registration puts the new ETF apart from other BTC futures ETFs whose registration and regulation is under the Investment Company Act of 1940, the law firm noted.
The Fund has obtained approval from the US Securities and Exchange Commission (SEC) and will list on the NYSE Arca after the securities agency accelerated its registration.
Fund’s approval could open path for spot ETF
Teucrium Trading, which specialises in offering investors a range of ETFs targeted at exposure to alternative markets including in commodities, sponsored the fund. Vedder Price, through Shareholder Tom Conner, helped secure the necessary regulatory approvals needed to launch the ETF – including from the National Futures Association.
Veder Price explained the process followed to achieve the SEC approval:
“The first necessary regulatory approval was obtaining stock exchange listing authority from the SEC. The SEC granted approval based in part on arguments that the bitcoin futures market has grown and matured to the extent that its surveillance agreement with the Fund’s listing exchange (NYSE Arca) can reasonably be expected to identify trading abuses.”
While the SEC is yet to approve of a spot Bitcoin ETF, Veder Price says the approval could have “broad industry implications.” Indeed, the firm envisages the potential for this ETFs approval to be a watershed moment not just for similar ETF applications, but also signals the possibility of a spot Bitcoin ETF.
Accordingly, fund sponsors contend that the approval of Hashdex Bitcoin Futures ETF “may open the door for a spot bitcoin ETF because a spot bitcoin ETF would be governed under the same rules as the Fund.”
The SEC has denied numerous spot Bitcoin ETFs, and as we reported in June, the chances for one have looked slim. Meanwhile, the watchdog has allowed a number of Futures-backed ones (including the ProShares Bitcoin Strategy ETF).
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