manager VanEck has filed an amended application for a spot Bitcoin
exchange-traded fund (ETF) with the United States Securities and Exchange Commission
(SEC). The filing, submitted on October 27, highlights a unique approach to
seeding the fund with a block of 50,000 shares of the proposed ETF.
other spot Bitcoin ETF proposals that rely on cash for seeding, VanEck’s
approach involves a seed capital investor who purchased the Seed Creation
Baskets in October, with Bitcoin prices determined by the MarketVector Bitcoin
Benchmark Rate—an index serving as a reference price for the cryptocurrency.
significance of this amended filing lies in the use of Bitcoin for seeding, a
departure from the common practice of using cash for such purposes in other
spot Bitcoin ETF proposals. This approach is expected to draw the
attention of investors seeking direct exposure to Bitcoin through traditional
asset managers, as a spot Bitcoin ETF would directly invest in the
cryptocurrency rather than in Bitcoin futures.
move to file an amended application follows a trend in the industry, with
several other asset managers revising their applications for spot Bitcoin ETFs.
In September, Bitwise Asset Management amended its application in response to
objections raised by the SEC.
ARK Invest and 21Shares provided additional information in their joint
application, addressing aspects related to asset custody and valuation for
their proposed spot Bitcoin ETF.The flurry of amended filings suggests ongoing
negotiations between asset managers and regulatory authorities. Analysts view
this as a positive sign, indicating progress in addressing SEC concerns and moving the
approval process forward.
SEC has been deliberating on multiple proposals for spot Bitcoin ETFs,
including those from BlackRock,
VanEck, and Valkyrie. Market participants and experts anticipate a decision in
the coming weeks, a development eagerly awaited in the cryptocurrency and
— BITCOINLFG® (@bitcoinlfgo) October 30, 2023
SEC Delays Impact Asset Managers
has introduced the VanEck Ethereum Strategy ETF (EFUT), designed to offer
investors exposure to the future of Ethereum (ETH) through ETH futures
contracts, Finance Magnates
reported earlier this month. Unlike traditional