Posted 6 months ago | by @devadmin
Asset manager VanEck who has withdrawn its applications in the past is taking another chance at approval for a Bitcoin Exchange-Traded Fund (ETF). If approved, VanEck would be the first ETF to achieve approval from the U.S. Securities and Exchange Commission (SEC) who has continuously denied several applicants.
VanEck has filed for a comparable product at least twice in the past, resulting in withdrawals due to other applicants being denied. After a series of rejections from the SEC last year, VanEck withdrew its previous proposal in September of 2019. The asset manager has now filed a new S-1 with the SEC for another fund, called the VanEck Bitcoin Trust.
The ETF’s shares would be traded on the Cboe BZX Exchange if approved by the SEC. The shares would be valued daily based on Bitcoin prices on the top five Bitcoin exchanges, which will be calculated by affiliate firm MV Index Solutions who would examine volume. The recommended maximum aggregate offering price, which is the number of securities multiplied by the price of each security, is $1,000,000.
However, a custodian was not named in the preliminary plan, which makes the proposal incomplete and subject to changes. Many believe that a Bitcoin ETF will be approved in 2021. Last year, VanECK launched an ETN or Bitcoin exchange-traded-note traded on the Deutsche Boerse Xetra. VanEck Vectors Bitcoin ETN (VBTC) is physically backed by Bitcoin and tracks the MVIS CryptoCompare Bitcoin VWAP Close index according to a tweet from the company’s digital asset strategist Gabor Gurbacs, as Bitboy Crypto reported.
An ETN unlike a mutual exchange-traded fund (ETF), is an unsecured debt security payable to the bearer that tracks an underlying asset or an index, in this case Bitcoin. Essentially investors can gain exposure to Bitcoin without owning physically owning it themselves.
Meanwhile, in Canada, right before the new year, Canadian digital asset investment manager 3iQ launched the world’s first IPO for an Ethereum ETF. The fund will be called, The Ether Fund, traded on the Toronto Stock Exchange (TSX) under the ticker QETH.U, as Bitboy Crypto reported. Regulators seem to be warming up to the idea of cryptocurrency-backed ETF funds. In September of last year, it’s worth noting that Brazil allowed for the first Bitcoin ETF in partnership with the Nasdaq and Brazilian Hasdex traded on the Bermuda Stock Exchange.
Bitcoin is currently trading at [FIAT: $29,246.62] UP +0.6% in the last 24 hours according to Coingecko at the time of this report.