June 15, 2021

A New Attempt: VanEck Files for a Bitcoin ETF

2 min read

Following a couple of unsuccessful attempts, the New York City-based huge possession supervisor VanEck has filed another file with the SEC to introduce a Bitcoin ETF. If effective, the VanEck Bitcoin Trust would reflect the performance of the MVIS CryptoCompare Bitcoin Benchmark Rate.

VanEck Tries Again For A BTC ETF

Established in 1955, VanEck is a huge US financial investment company with about $50 billion in properties under management since 2019. The company has actually been actively involved with the cryptocurrency field also, most notably– with efforts to establish a Bitcoin ETF.

Up until now, though, VanEck has actually withdrawn both of its applications– the current one in September 2019. However, the company has revealed a dedication to release such an exchange-traded item.

VanEck has submitted a brand-new S-1 form with the US Securities and Exchange Commission to establish a Bitcoin ETF called The VanEck Bitcoin Trust. Just like previous applications, this ETF’s shares would be traded on the Cboe BZX Exchange.

“In seeking to accomplish its financial investment objective, the Trust will hold bitcoin and will value its shares daily based on the reported MVIS CryptoCompare Bitcoin Benchmark Rate.”– checks out the file. It included that “VanEck Digital Assets LLC is the sponsor of the Trust, and Delaware Trust Company is the trustee of the Trust.”

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US Securities And Exchange Commission. Source: CNBC Challenges And Hopes For A SEC-Approved BTC ETF

Apart from the two not successful applications from VanEck, the SEC has actually dismissed numerous other comparable efforts. Back in 2018, the Commission rejected nine applications in simply one day.

This has raised questions within the community if the guard dog will ever authorize a Bitcoin ETF. The former SEC Chair, Jay Clayton, said last year that an exchange-traded product tracking the primary cryptocurrency is possible, however “there’s work left to be done.”

Clayton highlighted that organizations require to deal with essential issues, including price control and bitcoin custody, prior to wishing to get SEC approval.

With that in mind, VanEck’s timing appears rather intriguing. The business’s most current attempt has come quickly after Clayton stepped down.

Nate Geraci, president of the financial investment advisory company ETF Store, told Bloomberg that filing for a Bitcoin ETF at this moment suggests that VanEck thinks there’re “moving viewpoints within the SEC.”

Geraci described that President Biden’s choice for the next SEC Chair will be the “key” to solving this drama.