Asset management company VanEck has filed a preliminary filing with the SEC asking for approval to launch an exchange-traded fund (ETF) on Bitcoin.
If accepted, it will be the first such product to be approved by the US Securities and Exchange Commission. However, the regulator has repeatedly delayed the approval deadline and subsequently rejected such applications, including from VanEck itself. So, the last time VanEck withdrew its application from the SEC in September 2019. However, since then the cryptocurrency market has continued to develop and, perhaps, the regulator will be more supportive this time.
The name of the fund, according to the application , will be VanEck Bitcoin Trust. ETF shares will be traded on the Cboe BZX exchange, and the share price will be calculated daily based on bitcoin quotes from the five largest cryptocurrency exchanges. The price index of the first cryptocurrency will be calculated by the subsidiary company MV Index Solutions. The maximum aggregate price of the fund’s placement is still quite small – only $ 1 million. Note that the order does not specify a custodian service – the order will be supplemented.
In late November, VanEck launched Exchange Traded Bonds (ETNs) on the Xentra platform of the Deutsche Börse German stock exchange. The ETN price corresponds to the bitcoin rate, and the exchange product itself is backed by BTC.