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- VanEck, a New York-based financial firm, has applied to the SEC to launch a BTC Strategy ETF
- Bitcoin futures, bitcoin funds, and numerous other financial vehicles relating to the core cryptocurrency will be included in the ETF
- It’s worth mentioning that the SEC has not yet approved a Bitcoin ETF or any other ETF that tracks the performance of a digital asset in the US
Gary Gensler, the chairman of the Securities and Exchange Commission, recently stated that he would be more open to adopting ETFs based on crypto futures rather than direct exposure. VanEck, asset management, is attempting to launch a Bitcoin Strategy exchange-traded fund after failing to do it four years ago.
Prospectus filed by VanEck for a Bitcoin Strategy
On August 9, VanEck filed a prospectus for a Bitcoin Strategy exchange-traded fund, or ETF, with the Securities and Exchange Commission, or SEC. Unlike the Bitcoin (BTC) and Ether (ETH) ETFs now under evaluation by the federal government, the proposed fund would provide exposure to BTC through Bitcoin futures contracts, pooled investment vehicles, and other exchange-traded instruments, rather than directly investing in BTC.
The Bitcoin Strategy ETF, according to VanEck, would provide exposure to crypto ETFs listed and traded in Canada, including those from Purpose Investments and Evolve Funds Group. The investments will be made by a Cayman Islands-based subsidiary of the asset manager.
Other companies also filing the same prospectus for a Bitcoin strategy
Despite the fact that VanEck filed a comparable prospectus for a Bitcoin Strategy ETF in 2017, SEC head Gary Gensler has stated that ETFs based on crypto futures rather than direct exposure would be more acceptable. Following Gensler’s revelation, some companies filed similar strategy ETFs with the government body; on Aug. 5, investment firm Invesco announced its own ambitions to launch a Bitcoin ETF without direct exposure.
In the United States, the SEC has yet to authorize a Bitcoin ETF. VanEck, Valkyrie Digital Assets, Fidelity Investments, and others, on the other hand, have proposed their own crypto ETFs. To appear to postpone making a judgment on a fund, the commission has traditionally extended the consideration period or opened the topic to public debate.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
