VanEck’s bitcoin futures ETF is set to start trading on Tuesday

abdelaziz Fathi

US asset manager, VanEck is set to launch the third-ever US Bitcoin futures exchange-traded fund on November 16.

VanEck Bitcoin Strategy ETF will start trading on the Chicago Board Options Exchange (CBOE) under the ticker symbol XBTF on Tuesday, according to a corporate filing Monday.

XBTF follows the successful debut of the Valkyrie’s Bitcoin Strategy ETF on Nasdaq, which was preceded by ProShares Bitcoin Strategy ETF (BITO). The latter was the first Bitcoin futures ETF to get listed on a US exchange and accumulated more than $1.5 billion in assets in less than a month of trading.

The actively managed fund would not invest in the No.1 cryptocurrency directly, but rather futures and other investment vehicles that provide exposure to bitcoin.

The milestone comes a few days 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 Cboe couldn’t demonstrate it would be able to prevent fraudulent trading to protect investors.

VanEck, which has over $80 billion in assets under management, had filed with the US top watchdog for a regulated ETF tracking an index that draws data from five crypto exchanges.

At the time, VanEck’s Bitcoin ETF SEC filing stressed that the index aims to capture the total returns available to investors in the world’s largest crypto asset. The new ETF differs from previously-filed similar proposals in that it falls under the stricter 1940 law governing mutual funds.

SEC Chair Gary Gensler said that he would be open to approving a bitcoin-futures ETF, but only under certain conditions. The revelation rankled some fund managers who were hopeful of a physically backed ETF, but regulated like a normal exchange-traded fund under a 1933 law.

“Cost and tax treatment are two essential considerations for investors, and we have made both front and center in the design of XBTF. Investors deserve lower cost, transparent, regulated bitcoin exposures, and we’re pleased to be leading that charge with the launch of XBTF and all of our ongoing efforts in the bitcoin and digital assets space,” said Kyle DaCruz, Director, Digital Assets Product with VanEck.

Nadine Chakar, head of State Street Digital, added: “Our newly launched division, State Street Digital, was created to help drive innovation and address the industry’s evolving shift to digital finance, and we continue to prioritize developing our servicing capabilities as part of our broader strategy for the crypto and digital assets environment. We are pleased to further develop our longstanding partnership with VanEck on this important fund launch.”

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