VanEck Files New Bitcoin ETF Proposal
Investment management firm VanEck has filed a new application to launch a Bitcoin ETF. The New York-based firm filed with the SEC on 30 December, 2020 in the hope of finally winning approval for the VanEck Bitcoin Trust.
This latest Bitcoin ETF filing comes just a week after anti-Bitcoin SEC chairman Jay Clayton resigned from his post.
It’s not known who the next chairman will be, but for now Elad L. Roisman is the acting chairman.
However, this is due to change after President-elect Biden takes the reigns, and many Bitcoiners will be hoping it will be ‘Crypto Mom’ Hester Peirce, who has vocally criticized the SEC’s decisions in the past to deny several Bitcoin ETF attempts.
The VanEck Bitcoin Trust ETF Proposal
According to the filing, the sale of the fund’s shares will commence as soon as possible after the effective date of this registration statement.
‘The Vaneck Bitcoin Trust (the ‘Trust’) is an exchange-traded fund that issues common shares of beneficial interest (the ‘Shares’) that trade on the Cboe BZX Exchange Inc. The Trust’s investment objective is to reflect the performance of the Mvis Cryptocompare Bitcoin Benchmark Rate less the expenses of the Trust’s operations.’
The filing also asserts the VanEck Bitcoin Trust ‘will hold Bitcoin and will value its shares daily based on the reported Mvis Cryptocompare Bitcoin Benchmark Rate,’ which is the index representing the five leading cryptocurrency exchange.
‘Barring a liquidation or extraordinary circumstances, the Trust does not intend on purchasing or selling Bitcoin directly, although the Trustee may direct the Bitcoin Custodian to sell Bitcoin to pay certain expenses. Instead when the Trust sells or redeems its Shares, it will do so in ‘in-kind’ transactions in blocks … at the Trust’s net asset value.’
Vaneck Director of Digital Assets Strategy Gabor Gurbacs said it was VanEck’s main priority to bring a Bitcoin ETF to the US and were working hard to achieve their goal.
‘Bringing to market a physical Bitcoin ETF in the U.S. is a top priority for Vaneck,’ said Gurbacs. ‘We are committed to support Bitcoin-focused innovation and continue to work with regulators and market participants to achieve that goal.’
Veterans of Bitcoin ETF Proposals
VanEck has had several Bitcoin ETF proposals denied by the SEC, with the investment company retracting their last one in September 2019.
This latest attempt, the Bitcoin Trust is the first by any company in over a year and because of the liquidity pouring into the Bitcoin market, there is almost a sense of expectation.
The hope for a Bitcoin ETF has been on going since 2015, and surely the SEC is running out of excuses. Added with the institutional adoption of Bitcoin and the resignation of Jay Clayton, there further optimism.
On 25 November, Vaneck launched a Bitcoin exchange-traded note (ETN) in Europe. The ETN is physically-backed by Bitcoin and listed on Deutsche Böerse Xetra.
The ETN is similar to an ETF and it allows investors to participate directly in the performance of Bitcoin (BTC), without having to buy it themselves.
There are several other Bitcoin ETNs or ETPs on markets across Europe, such as the ETC Group’s Bitcoin ETP (BTCE).
The BTCE is also listed on Deutsche Böerse Xetra, and quickly gained traction, and although they aren’t Bitcoin ETFs surely the SEC knows that it can’t afford to lose ground with Europe.
When Bitcoin ETF?
Bitcoin is attracting huge swathes of institutional money, and it’s also being used to prop up corporate balance sheets now.
The Bitcoin market has never been more legitimate to the regulators, and it seems like a Bitcoin ETF will soon be passed.
The effects that would have on the Bitcoin price is potentially huge. It’s not a matter of if we get a Bitcoin ETF, but when.
VanEck has lead the way in pushing for an ETF, so it would be fitting if the investment firm gets to offer the first Bitcoin ETF.
