VanEck Amends Bitcoin ETF Application Amid Increasing Negotiations with Regulators
Summary:
VanEck, an asset management firm, has modified its spot Bitcoin Exchange-Traded Fund (ETF) application with the U.S. Securities and Exchange Commission. Unlike many other proposals, the ETF will be based on Bitcoin rather than cash. The move adds to the recent trend of amended filings, with Bitwise Asset Management, ARK Invest and 21Shares also updating their applications, suggesting ongoing negotiations with regulators. The U.S. SEC has yet to make a decision on several spot Bitcoin ETF proposals.
On October 27, VanEck, an asset management firm, modified its application with the U.S. Securities and Exchange Commission (SEC) for the establishment of a Bitcoin (BTC) spot exchange-traded fund (ETF). This news was noted in the regulator's official registry. The revised request reveals that this month, an early stage investor acquired the Seed Creation Baskets (a unit of 50,000 shares from the proposed ETF) with Bitcoin-based pricing according to the MarketVector Bitcoin Benchmark Rate, a key index for pricing the digital currency. Financial legal expert Scott Johnsson deduces from the application that the ETF's foundation will be built on Bitcoin, rather than cash, diverging from other Bitcoin spot ETF proposals. This trails with VanEck's contribution to the growing queue of asset management entities updating their Bitcoin spot ETF applications.
A spot Bitcoin ETF could directly invest in Bitcoin – unlike existing ETFs that invest in Bitcoin futures. It's anticipated that this spot variant will entice significant investment from investors looking to gain Bitcoin exposure through the usually approached asset managers. In response to the SEC's concerns, this filing follows Bitwise Asset Management's amended application filed in September, while earlier in October, ARK Invest and 21Shares also modified their joint application, offering more details about their intended Bitcoin spot ETF, such as procedures for asset valuation and protection.
The trend of modified filings implies that discussions between asset managers and regulators may be advancing. Eric Balchunas, an ETF analyst, recently commented on the proposals pending regulatory approval, highlighting that the modifications in ETF proposals perhaps mirror the SEC's request for their issues to be addressed. Balchunas reported on X (previously Twitter), "ARK has addressed all the comments from the SEC, and pushed the matter back to the regulator, which in my view is a healthy signal of effective progress."
The U.S. SEC has postponed decisions on various spot Bitcoin ETF proposals, including those by BlackRock, Invesco, Bitwise, VanEck, and Valkyrie. Market participants and analysts anticipate a decision within the forthcoming weeks.
Published At
10/29/2023 9:05:32 PM
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