VanEck Bitcoin Trust ETF Seeding with Bitcoin Instead of Dollars
VanEck has submitted an amended version of its application for the issuance of the VanEck Bitcoin Trust ETF. The seeding of the fund may be done directly in Bitcoin, according to attorney Scott Johnsson’s analysis. Seeding is used to finance the establishment of the fund and the issuance of the first shares. In this case, it seems that BTC will be used directly for seeding, eliminating the need to buy them in the market. One investor already purchased an initial block of 50,000 shares of the ETF, paying directly in Bitcoin.
Timeline for Approval of VanEck’s Bitcoin ETF
The assumption is that the SEC will approve all applications for spot Bitcoin ETFs that qualify for issuance together. Approval is considered at least 90% probable and expected by January 10th. However, it is likely that approval could come either in early January or late December as the SEC typically takes its time to deliberate. Managers are already preparing to launch these ETFs on the market as soon as possible.
VanEck and its Expertise in ETFs
VanEck is an asset manager specializing in ETFs. It was one of the first to launch a gold ETF in the US and has been interested in Bitcoin since 2017. The company has launched ETNs on various cryptocurrencies, including Bitcoin, Ethereum, Solana, Polygon, Algorand, Chainlink, and Avalanche. Among all traditional companies applying for permission to issue a Bitcoin spot ETF on US exchanges, VanEck has significant experience in crypto markets.
Bitcoin’s Unique Position
Bitcoin stands apart from all other assets and has attracted attention from traditional asset managers. ETNs on BTC are of much more interest to traditional financial markets than other crypto ETNs. Bitcoin’s market capitalization alone is larger than the sum of all other cryptocurrencies, including Ethereum and stablecoins like USDT.
Hot Take: VanEck Innovates with Bitcoin ETF Seeding
VanEck’s decision to seed its Bitcoin Trust ETF directly with Bitcoin instead of dollars sets it apart from other ETFs. By immobilizing existing BTC as collateral, the need to purchase BTC in the market is eliminated. This innovative approach may pave the way for more efficient and seamless ETF launches in the future. With growing anticipation for SEC approval and VanEck’s expertise in crypto markets, the launch of their Bitcoin ETF could have a significant impact on the broader adoption and acceptance of Bitcoin as a legitimate asset class.
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