VanEck, a U.S.-based asset manager firm, has again filed with the U.S. SEC for the fourth time. The firm is seeking to get permission for a regulated Bitcoin Exchange-Traded Fund (ETF). This time the firm has filed for VanEck Bitcoin Trust that will be traded on the Cboe BZX Exchange if approved.
The regulated Bitcoin ETF, for which VanEck has filed with the SEC, will be tracking MVIS CryptoCompare Bitcoin Benchmark Rate. According to the firm, this index will capture the total returns that are available to the investors in Bitcoin. It has also been stated that this proposal is different from all the previously proposed ones.
VanEck Is the Sponsor of the Bitcoin Trust
VanEck has revealed that the Trust will be holding Bitcoin, and will value its share on a daily basis. The firm is the sponsor, Delaware Trust Company is the trustee, and the Bitcoin Custodian is the custodian of the trust.
It is also revealed that in case Bitcoin ETF goes live, it won’t be available to retail investors. However, institutional investors are going to get great exposure to cryptocurrencies and they won’t even have to deal with the regular crypto exchanges.
SEC Cites Fear of Market Manipulation
VanEck has filed several times with the U.S. SEC and the first time was in collaboration with SolidX, a blockchain technology firm. During that time, there were claims that this proposal will get approval from the SEC. However, the U.S. top watchdog has cited some fears of market manipulation with their proposal. This time again there are hopes that the SEC might approve this proposal as the administration is now changing.
The whole crypto industry is quite hopeful of the administration of President-elect Joe Biden. In case the firm gets approval for this fund, there will be a great opportunity for all the institutional investors who wish to invest in cryptocurrency.