The Switch to Cash-Only Subscriptions for Bitcoin ETFs
An asset manager, VanEck, has submitted an amended S-1 Form with the SEC, opting for cash-only subscriptions like other issuers seeking spot Bitcoin ETF approval. This move aligns with the U.S. Securities and Exchange Commission’s (SEC) requirements.
Unidentified Authorized Participants
VanEck’s update did not disclose the authorized participants (APs) for its VanEck Bitcoin Trust, which aims to invest in Bitcoin at its spot price. These APs act as underwriters and guarantee payment and redemptions in case of financial losses. APs are typically banks, insurance companies, or investment houses.
The Requirement to Disclose APs
If the SEC approves spot Bitcoin ETF products, issuers like VanEck must disclose their APs before the launch. This information will be included in the effective prospectus submitted by the issuer before going live.
Promotional Activities and Leadership Shifts
VanECK released a promotional video for its spot BTC ETF, anticipating approval in early January. Hashdex, another asset manager competing for the same fund, also posted marketing content and filed a new S-1. Additionally, there have been leadership changes among issuers and custodians to prepare for the potential approval of Bitcoin ETFs.
Hot Take: Anticipation Builds for Bitcoin ETF Approval
The crypto industry is eagerly awaiting the SEC’s decision on spot Bitcoin ETFs. Issuers are adapting to the SEC’s requirements by switching to cash-only subscriptions and preparing their promotional activities. The disclosure of authorized participants remains a crucial step before the launch of these ETFs. With leadership shifts and custodial partnerships being established, players in the market are positioning themselves for what could be a groundbreaking development in the financial industry.
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