After Spot BTC ETF Rejection, VanEck Set To Launch Futures ETF Tuesday

KEY POINTS

VanEck is ready to launch its first Bitcoin futures ETF on Tuesday
The VanEck BTC spot ETF submitted for approval was rejected by SEC
The futures ETF will trade on CBOE Exchange under ticker "XBTF"

VanEck plans to launch its Bitcoin futures-based exchange-traded fund after the U.S. Securities and Exchange Commission rejected its request to approve a Bitcoin spot ETF. The Bitcoin futures ETF will launch on Tuesday, the firm said on its official website.

The Bitcoin futures ETF will be launched under the ticker “XBTF” on the Chicago Board Options Exchange (CBOE). “For new ETP (exchange-traded products) issues, CBOE conducts a single New Issue Auction to open trading at approximately 9:30 a.m. ET,” said a notice on the firm's website.

VanEck got approval for the Bitcoin futures ETF in late October but it was not clear why the launch was delayed. Tracking the movement of the first BTC futures ETF, the VanEck ETF is also expected to make a promising debut on the CBOE Exchange.

The approval of the first futures ETF, the BITO ETF by ProShares, saw Bitcoin’s prices jump to a new all-time high. The ETF debuted on the NYSE with a massive volume of over $1 billion.

The SEC rejected the Bitcoin spot ETF, saying that the real commodity behind the spot ETF lacks surveillance and regulation. As per the notice released by the SEC last week, in order to secure approval, the VanEck spot ETC requires surveillance-sharing agreements which “provide a necessary deterrent to manipulation because they facilitate the availability of information needed to fully investigate a manipulation if it were to occur,” the notice said.

The SEC further said that VanEck’s approval, which was in discussion for seven months, failed to provide any solid proof that the crypto market or Bitcoin is “uniquely” and “inherently” safe from any kind of fraud or manipulation from huge and prominent members.

The investors are extremely bullish on the approval of a spot Bitcoin ETF and consider it a ‘seminal event’ for the price action. If approved, the token’s price will easily breach coming resistance zones.

A spot-backed ETF would mean exposure to Bitcoin’s price movement without actually having to put money in the cryptocurrency. This is the perfect deal for institutional investors who are hesitant in jumping into crypto investing considering environmental or regulatory factors.