VanEck Files Amended Application for Bitcoin ETF
VanEck has submitted an amended application to the U.S. Securities and Exchange Commission (SEC) in its pursuit of a Bitcoin exchange-traded fund (ETF). One notable aspect of the filing is the disclosure that an unnamed investor purchased Seed Creation Baskets for the VanEck Bitcoin Trust using Bitcoin. These baskets consist of 50,000 shares of the proposed ETF. The valuation of the Bitcoin holdings was determined by the MarketVector Bitcoin Benchmark Rate. Financial lawyer Scott Johnsson noted that VanEck’s amended filing uses similar language to BlackRock’s filing, suggesting that both issuers are represented by the same lawyers.
Direct Incorporation of Bitcoin
The amended filing indicates that VanEck plans to directly incorporate Bitcoin into its ETF product, rather than seeding it with cash. However, Johnsson cautioned against reading too much into this development, as it could simply be a result of lazy lawyering. The filing also highlights several factors that may impact the value of the ETF shares, including changes in the global Bitcoin supply, industry sentiment, trading activity, network forks, and competition from other digital assets or payment services.
Caution not to read too much into this. Still, it’s an affirmative addition so either suggestive of actual intent or maybe just rather lazy lawyering.
— Scott Johnsson (@SGJohnsson) October 29, 2023
Other Firms Amending ETF Applications
VanEck is not the only firm making adjustments to its Bitcoin ETF application. Bitwise Asset Management, ARK Invest, and 21Shares have also filed amended applications to address regulatory concerns. These firms are providing additional information to support the approval of their spot Bitcoin ETFs. A spot Bitcoin ETF allows investors to gain exposure to the actual price of Bitcoin without owning it directly, making it more appealing to traditional investors. However, the SEC has repeatedly delayed or rejected spot Bitcoin ETF approvals due to concerns about market manipulation, investor protection, and regulatory oversight.
Hot Take: VanEck Pursues Bitcoin ETF with Direct Incorporation of BTC
VanEck’s amended application for a Bitcoin ETF signals its intent to directly incorporate Bitcoin into the product, rather than using cash. This move aligns with other recent filings by firms like BlackRock and addresses concerns about regulatory oversight and market manipulation. While it remains uncertain whether these amendments will lead to the approval of a spot Bitcoin ETF, they demonstrate continued efforts by asset management companies to offer investors exposure to cryptocurrency in a regulated manner. As the industry evolves and regulatory concerns are addressed, the possibility of a Bitcoin ETF becoming a reality grows stronger.
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