Argentina Plans to Launch Bitcoin Futures; US SEC Postpones Valkyrie Spot BTC ETF Deadline to Jan

Argentina Plans to Launch Bitcoin Futures While US SEC Postpones Valkyrie Spot Bitcoin ETF Deadline to Early January

Valkyrie Fund CIO says Bitcoin Spot ETF is not coming until the middle of next year as the regulator tries to “get their heads around what exactly is going on with these exchanges.”

Argentina is now considering launching regulated Bitcoin futures.

Local Futures and Options exchange Matba Rofex submitted a proposal to Argentina’s securities regulator to launch cash-settled Bitcoin futures in Argentine pesos. Talks for the same began a few months ago, but the National Securities Commission of Argentina is yet to rule on the matter.

If approved, this will be the first regulated Bitcoin futures to be launched in Argentina though similar products are accessible through unregulated platforms.

The product would not be aimed at the general public but only at “qualified and specialized investors” and “corporations” who are “informed about the product and its volatility.”

It is likely the company would get the approval as a few months back, the President of Argentina Alberto Fernandez had said that he was open to adopting Bitcoin as legal tender.

“I don’t want to go too far out on a limb […], but there is no reason to say no,” he said at the time.

Rofex, the biggest futures market in Argentina, is not only eyeing futures for Bitcoin but also considering similar products for other cryptocurrencies if there is demand for them.

What About the Bitcoin Spot ETF?

In the US, meanwhile, the first Bitcoin Futures ETF started trading last month. More than one such product made its debut, with ProShares becoming the fastest fund to amass $1 billion in assets while Valkyrie Bitcoin Strategy ETF (BTF) attracted $10 million in the first 5 minutes of trading.

While the exchange-traded fund tied to Bitcoin futures contracts listed on the CME has seen the green light, the spot Bitcoin ETF is nowhere close to reality. This week, the US SEC further postponed its decision on the Valkyrie Bitcoin Fund for an additional 60 days, i.e., January 7, 2022.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised in the comment letters that have been submitted in connection therewith,” said the regulator in a statement.

In an interview with CNBC, Valkyrie Funds chief investment officer Steven McClurg said he doesn’t see a bitcoin ETF until at least the middle of next year.

“The staff is still trying to get their heads around what exactly is going on with these exchanges. They’re trying to put a little bit more regulatory structure around them before they … move forward with this,” he said.

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Author: AnTy

Ark Invest Joins the BTC Futures ETF Race, Valkyrie Updates Prospectus for Potential Approval

Cathie Wood’s Ark Throws its Hat in the Bitcoin Futures ETF Ring, Valkyrie Updates Prospectus for Potential Approval This Month

Cathie Wood had joined the race of Bitcoin Futures exchange-traded fund (ETF) with its ARK 21Shares Bitcoin Futures Strategy ETF (ARKA).

The ETF plans to invest Bitcoin futures contracts on commodity exchanges, according to a filing with the Securities and Exchange Commission (SEC).

Alpha Architect, an issuer of ETFs, submitted the filing with Switzerland-based 21Shares AG’s US affiliate listed as the sub-advisor. Ark Investment will provide marketing support for the sub-advisor.

“It’s a no brainer for Ark because they will likely be able to instantly seed it with about half a billion that they currently have in GBTC,” said Eric Balchunas, a senior ETF analyst for Bloomberg Intelligence.

“Ark also has a strong base of younger investors who probably would use this as well. Closest thing to a surefire hit as you’ll see.”

Ark Investment has already given its name for the physically-backed ETF — ARK 21Shares Bitcoin ETF (ARKB) that would track the performance of the leading cryptocurrency as measured by the S&P Bitcoin Index, according to a June filing.

But all the attempts to get a physically-backed Bitcoin ETF since 2013 have failed so far, with the SEC rejecting every one of them. The hope for a Bitcoin ETF has rejoiced this month due to SEC Chair Gary Gensler hinting his support for a futures-backed ETF that offers greater investor protection for months now.

The optimism around the Bitcoin ETF approval is what’s driving the Bitcoin price action right now, which has surged to its highest level since May. Open interest on Bitcoin futures at CME has also hit a new ATH.

Ever since Gensler announced that he would be more open to approving an ETF submitted under the Investment company Act of 1940, nine Bitcoin futures ETF applications have been filed so far.

Everyone in the crypto industry is now eagerly awaiting October 18th, the day the SEC has to decide on ProShares Bitcoin Strategy ETF.

“No news from SEC over the next week is a positive for a potential ETF launch in our view,” said James Seyffart, ETF analyst at Bloomberg Intelligence.

However, only three filings are limited to futures, including Valkyrie Bitcoin Strategy ETF, whose deadline is on October 25th, BlockFi Bitcoin Strategy ETF, whose deadline doesn’t come until the end of the year on December 22nd, five days later, Ark21 SharesBitcoin Futures Strategy ETF.

Ark’s filing is actually the second one after Valkyrie that doesn’t seek to invest in Canadian-listed funds that provide exposure to bitcoin. Bloomberg’s Balchunas said the rumor is that SEC “wants them to be strictly futures,” which puts Valkyrie’s chance of getting an approval higher than ProShares.

On Wednesday, Valkyrie also updated their bitcoin futures ETF to add the ticker BTF, but information on fees still hasn’t been added. These types of updated prospectus filings, Balchunas said, “typically only happens when ducks in row ready for launch.”

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Author: AnTy

A New ETF is Filed to Invest in Companies Having Direct or Indirect Exposure to Bitcoin

But the Valkyrie Innovative Balance Sheet ETF Fund has no plans to invest in Bitcoin directly or indirectly through derivatives.

Valkyrie Digital Assets has filed for an exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC) that would invest in companies that have Bitcoin on their balance sheet or are indirectly dealing with the cryptocurrency.

A Form N1-A has been filed for Valkyrie Innovative Balance Sheet ETF in partnership with KKM Financial, which is the investment advisor of the fund, and for the distributor of the fund, the company has chosen institutional asset manager SEI. The document reads,

“The Fund is an actively-managed exchange-traded fund (“ETF”) that will invest principally in the securities of operating companies… that directly or indirectly invest in, transact in, or otherwise have exposure to bitcoin or operate in the bitcoin ecosystem.”

The Bitcoin ecosystem is defined here as trading platforms, miners, custodians, digital wallet providers, companies that facilitate payments in bitcoin, and companies that provide other technology, equipment, or services to companies operating in the ecosystem. However, the Fund has no interest whatsoever in investing in Bitcoin directly or indirectly through derivatives.

Just today, BTC/USD has made a new ATH above $60,000.

Last week, JPMorgan Chase published a filing for an incoming debt instrument that will also invest in companies like MicroStrategy, Square, chipmaker Nvidia, and others that are involved with cryptocurrency.

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Author: AnTy