Asset 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.
Industry Trend: Asset Managers Revising ETF Application
Unlike 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.
The 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.
VanEck's 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.
Additionally, 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.
The SEC has been deliberating on multiple proposals for spot Bitcoin ETFs, including those from BlackRock, Invesco, Bitwise, VanEck, and Valkyrie. Market participants and experts anticipate a decision in the coming weeks, a development eagerly awaited in the cryptocurrency and investment communities.
SEC Delays Impact Asset Managers
VanEck 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 cryptocurrencies, EFUT focuses on ETH futures, aiming to provide tax advantages for long-term investors.
The firm invests in cash-settled ETH futures traded on commodity exchanges registered with the Commodity Futures Trading Commission, initially focusing on ETH futures traded on the Chicago Mercantile Exchange. The ETFs are actively managed by Greg Krenzer, and they join VanEck's Bitcoin Strategy ETF in offering futures-based digital asset exposure. The SEC's delays in deciding on spot Bitcoin ETFs have affected companies like VanEck.
