VanEck Bitcoin futures ETF to debut on Cboe after SEC rejects spot BTC proposal

• The SEC announced on November 12 that it rejected a Bitcoin ETF by VanEck tied directly to the cryptocurrency’s price.
• VanEck will launch its Bitcoin Strategy ETF, tied to BTC futures contracts on November 16.
• The asset manager stated that a spot Bitcoin ETF remains a key goal.

Shortly after the United States Securities & Exchange Commission (SEC) rejected VanEck’s Bitcoin spot exchange-traded fund offering last week, the firm is set to launch the third BTC futures ETF on November 16. 

VanEck Bitcoin Strategy ETF to debut on Cboe

VanEck’s Bitcoin Strategy ETF will become the third BTC futures-based ETF in the United States, trading under the ticker symbol “XBTF” on the Cboe BZX Exchange.

As one of the first asset managers in the United States to file for a request for a Bitcoin ETF, VanEck has been denied a successful approval for a number of years. The firm offers a total of 59 ETF products with total assets under management reaching over $64 billion.

State Street will provide XBTF with ETF basket operations services and custody of the ETF shares. 

In October, the United States witnessed a watershed moment when the first Bitcoin ETF by ProShares, tied to the cryptocurrency’s futures, was approved in the country. Another notable asset manager, Valkyrie also saw its BTC ETF approved shortly after.

Bitcoin ETFs allow investors to gain exposure to the leading cryptocurrency without the requirement of asset custody. However, so far, the approved ETF products tied to the flagship cryptocurrency have been only backed by futures contracts, rather than by the actual BTC price. 

VanEck’s request to list a Bitcoin spot ETF was rejected by the SEC last week, as the regulator cited concerns of investor protection. The securities regulator has highlighted the potential for fraud and manipulation in the BTC market. The financial watchdog continues to favor futures-based ETFs over spot products when it comes to cryptocurrencies. 

Kyle DaCruz, VanEck’s director of digital assets product said in a statement that the physically-backed Bitcoin ETF remains a key goal for the asset manager but the firm is pleased to be providing the new product as an important tool while investors build their cryptocurrency portfolios.

Bitcoin price needs to hold above $61,000 to avoid further retracement

Bitcoin price has erased its gains from the week prior, plunging toward $61,000 as the leading cryptocurrency retraced. To avoid further losses, BTC must see a daily close above $61,882.

Although Bitcoin price sliced above the upper boundary of the symmetrical triangle pattern on November 8, suggesting a 13% climb toward $71,652, its bullish outlook may be voided if the leading cryptocurrency falls below the apex of the prevailing chart pattern at $61,882.

BTC/USDT 12-hour chart

Bitcoin price will discover immediate support at the 78.6% Fibonacci retracement level at $60,082. If further selling pressure rises, BTC could reach the November 1 low at $59,440.