U.S. asset manager VanEck has filed an application with the SEC to obtain approval for its VanEck Bitcoin Trust, a Bitcoin exchange-traded fund (ETF). In this fourth endeavor, the company offers VanEck Bitcoin Trust to trade on the Cboe BZX Exchange and basing the proposed fund on an index that represents data from five crypto exchanges. VanEck’s Bitcoin Trust is an ETF that describes BTC holdings at a 1:1 ratio.
VanEck filed with SEC for a regulated ETF that would trace MVIS® CryptoCompare Bitcoin Benchmark Rate. It already acts as a reference rate for funds, asset managers, and exchanges who aspire to build bitcoin financial products. VanEck states that the index intends to capture the total returns accessible to investors. The new ETF varies from earlier-filed similar proposals. Unlike earlier proposals, it will shield bitcoin holdings with a regulated third-party custodian and, as the index represents prices from a huge number of cryptocurrency exchanges.
Intricate details about VanEck’s former filing with SEC for Bitcoin ETF’s
As mentioned above, VanEck never applied for a physically-backed ETF earlier. The first time was in association with the blockchain technology company SolidX. Some argued that the proposal from VanEck was more likely to gain approval. It is owing to its plans for a high minimum share price that could discourage retail investors. Their combined offering, nevertheless, was defeated numerous times as the SEC indicated concerns of market manipulation.
In their last attempt, VanEck and its associates decided to get around the regulatory denial via exercising Rule 144A. It offers a safe harbor from the SEC’s registration conditions. Precisely, this rule was founded in 2012 to pardon the privately placed securities from registration restrictions. However, the shares trading limited only to qualified institutional clients and with less holding periods.
Nevertheless, it is unclear whether VanEck’s most advanced attempt to launch an ETF will succeed, given that the firm’s past attempts have failed. VanEck has filed three times since 2017. VanEck has been more prosperous in other related areas. The firm earlier launched an exchange-traded product (ETP) in Europe, as declared in late November. Germany’s Deutsche Börse Xetra venue listed the ETP. Moreover, it trades beside other cryptos ETPs in Europe, such as 21Shares.
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