VanEck joins other issuers in amending Bitcoin ETF applications

abdelaziz Fathi

US asset manager VanEck has taken another step in its quest to launch a spot Bitcoin exchange-traded fund (ETF) by filing an amended application with the U.S. Securities and Exchange Commission (SEC).

One key highlight from VanEck’s amended filing is the disclosure that an undisclosed seed capital investor acquired Seed Creation Baskets for the VanEck Bitcoin Trust in October. These baskets consist of 50,000 shares of the proposed ETF, and interestingly, they were purchased using Bitcoin. This approach differs from other spot Bitcoin ETF proposals, which typically involve seeding with cash.

The Bitcoin prices for these transactions were determined by the MarketVector Bitcoin Benchmark Rate, an index commonly used as a reference price for the cryptocurrency.

Scott Johnsson, a finance lawyer and general partner at Van Buren Capital, points out that VanEck’s amended filing uses language similar to that in the recently modified filing by Blackrock for its own spot Bitcoin ETF. Both issuers are represented by the same legal team at Clifford Chance, which might explain the similarities. However, VanEck’s approach to incorporate Bitcoin directly into the product, instead of using cash for seeding, sets it apart.

VanEck’s filing also outlines various factors that could influence the value of the ETF shares. These include changes in the global Bitcoin supply, overall sentiment towards the industry, trading activities on exchanges, forks in the Bitcoin blockchain, and competition from other digital assets or payment services.

VanEck is not alone in this endeavor. Other firms like Bitwise Asset Management, ARK Invest, 21Shares, and BlackRock have also been adjusting their applications for spot Bitcoin ETFs to address regulatory concerns. Bitwise, for instance, filed an amendment in September to include arguments against regulators’ reasons for denying American investors access to such a product. Similarly, ARK Invest and 21Shares amended their joint application with additional information about their proposed spot Bitcoin ETF.

VanEck, which has over $80 billion in assets under management, seems quite determined to introduce a spot Bitcoin exchange-traded fund (ETF). Despite the previous rejections, the company filed a third application with the SEC while many proposals were getting rejected.

The move also came two years after the SEC rejected VanEck’s proposed bitcoin exchange-traded fund that would have directly tracked the underlying cryptocurrency’s price moves. Citing fraud concerns, which was in line with previous rejections of proposed ETFs, the SEC said the firm couldn’t demonstrate it would be able to prevent fraudulent trading to protect investors.

Read this next

Retail FX

Revolut eyes Big Four auditor as board frustrated by BDO remarks

British fintech firm Revolut is reportedly considering a change in its auditing firm following a warning in its last annual accounts, as audited by BDO.

Institutional FX

Börse Group’s 360T taps Virtu for TCA and trading analytics

Virtu Financial and Deutsche Börse Group’s FX platform, 360T, have teamed up to improve the foreign exchange trading experience for their clients.

Digital Assets

Bybit Surpasses 20 Million Users Milestone Ahead of 5-Year Anniversary

Celebrating its 5th anniversary in December of this year, Bybit announced that it has surpassed 20 million registered users, highlighting its growth and position in the industry.

Digital Assets

Changpeng Zhao leaves Binance.US as SEC ramps up scrutiny

Changpeng ‘CZ’ Zhao has resigned from his position as chairman of the board for Binance.US, distancing himself from the governance of the American division of the cryptocurrency exchange.

Digital Assets

M2 granted full license to operate multilateral trading facility in UAE

Cryptocurrency exchange M2 has been approved as a fully regulated Multilateral Trading Facility (MTF) and custodian, now authorized to engage with UAE retail and institutional clients.

Digital Assets

Court approves Voyager’s $1.65 billion settlement with FTC

A New York federal judge has given the nod to a settlement that holds Voyager Digital and its former CEO, Stephen Ehrlich, accountable for misleading investors about the safety of their funds.

Retail FX

Financial Safety First: Why Regulated Brokers Are Your Best Compass

Picture yourself on the brink of the expansive financial trading universe, poised and ready to jump. But what ensures your descent into this financial abyss is controlled and secure? The unspoken hero here is regulation. It serves as a safeguard, setting rules and standards that help you navigate the market with a greater sense of security and less risk of unforeseen losses.

Industry News

Obituary: Campbell Adams, founder of ParFX and Pure Digital, passes away

Campbell Adams’ pioneering spirit and his contributions to the development of the FX industry as well as the digital asset trading space will be remembered and valued by industry peers and the broader financial community.

Inside View

Will Europe lead the way in crypto derivatives market structure?

The envisioned future market structure aims to provide direct access to regulated venues, offering 24/7 trading, lower initial margin requirements, and efficient risk management through remote custody agreements. This model is not just about addressing the current challenges but is also geared towards leveraging the best practices from the crypto markets.