The provider filed the document with the SEC on May 20, 2021. The fund the provider is proposing would not be physically backed by bitcoin.
Agricultural exchange fund provider Teucrium Trading filed with the U.S. Securities and Exchange Commission (SEC) an application to launch a bitcoin ETF (BTC).
According to the document that was consigned to the North American regulatory agency last Thursday, May 20, 2021, the ETF would apply its transactions on the United States electronic stock exchange NYSE Arca and would monitor the contracts of bitcoin futures.
Teucrium Trading LLC is a sponsor of agriculture-focused exchange-traded products available on the New York Stock Exchange. The company’s NYSE / Arca-listed funds provide investors with the ability to invest in agricultural commodities in the Exchange Traded Product (ETP) equity format.
SEC Pending Approval of Large Volume of Bitcoin ETFs
It is worth remembering that the SEC has yet to approve a considerable volume of bitcoin ETF applications. The most recent case is of the global investment manager, VanEck, who applied to the SEC for permission to issue a bitcoin ETF. However, the United States regulator postponed this decision until next June.
The company Galaxy Digital is also waiting; The firm joined last April as a new ETF applicant with the SEC; Grayscale follows, as does the petition from New York Digital Investment Group (NYDIG) and investment bank Morgan Stanley.
Teucrium Trading is hopeful that the move on its ETF will happen faster, as the fund it proposes is not physically supported by bitcoin, as is the case with the rest of the requests that the SEC has pending.
The companies that have requested permission from the SEC to put their ETFs on the stock market hope that their new president, Gary Gensler, will turn the wheel regarding the policy that the regulator has maintained in this regard. This hope goes for the official to begin the approval of these investment products in the United States of America.
ETF Launch will Depend on Market Confidence
ETFs or exchange-traded funds are one of the most widely traded financial products in international markets. ETFs are funds that can be traded on the stock market as if they were a stock. In other words, they are hybrid financial products since they have the same features of an investment fund and work the same as a share.
People believe that the launch of an ETF in a nation like the United States of America will depend on how confident the market is, this theory is how Valerie Szczepanik thinks on the matter. Szczepanik is the current director of the FinHub (Strategic Center for Innovation and Financial Technology, recently told this media).
In Szczepanik’s view, it will be crucial to know how the price and confidence of the underlying market will impact the launch. She affirmed that the ETF applications rejected so far “do not have to do with the product itself”, but “there is no reason not to move forward” if the necessary rules are met.
By: Jenson Nuñez
