The SEC approves a new Bitcoin derivatives Fund
The SEC may be slow to approve a bitcoin ETF, but that hasn't stopped them from approving a bitcoin derivatives fund.
In news announced late the other day, it was revealed that the SEC has approved the futures-focused NYDIG Bitcoin Strategy Fund.
The approval will give the fund the right to sell shares to institutional investors.
The full release can be seen here:
Some details....
NYDIG is now authorized to sell shares to qualified investors.
There is no minimum investment required.
The fund will seek to invest in bitcoin cash settled futures products that are registered with the CFTC.
Which sounds like the majority of investments will be done via the CME bitcoin futures products.
Earlier this year NYDIG Execution (a subsidiary of NYDIG) was granted the much sought after BitLicense.
This allows the company to provide custody and execution services within the state of New York.
Something that likely will be very valuable for the company as New York is arguable the financial capital of the world.
Paves the way for a bitcoin ETF?
This likely does help further the case for a bitcoin ETF.
The SEC approved a fund that is using CFTC registered products.
Which likely means that is their major issue with why they haven't approved a bitcoin ETF as of yet. They don't feel comfortable with the spot market pricing of bitcoin.
If someone offers an ETF product that is tied to CFTC registered products, they may be more likely to approve it.
Either way, the more products that get approved the higher the likelihood that a bitcoin ETF is on the way as well.
Stay informed my friends.
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